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WAR DIARY 



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German Naval Staff 
Operations Division 



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PART A VOLUME 36 

.wt. DOD OF 3 MAY 1972, SUBJ; 

DECL; ll RKU0KDS 



AUGUST J942 



6-159: 



WAR DIARY OF TEE GERMAN NAVAL STAFF 
(Operations Division) 

PART A 
August 1942 



Chief, Naval Staff: Grand Admiral Raeder, Dr. h. c. 

Chief of Staff, Naval Staff: Admiral Frlcke 

Chief, Operations Division, Naval Staff: Captain Wagner 



Volume 36 



begun: 1 Aug. 19*12 

closed: 31 Aug. 1942 



, 3 «!tf 1972, SBM« 






CONFIDENTIAL 



OFFICE OF NAVAL INTELLIGENCE 
Washington, D. C. 



Foreword 

1. The Office of Naval Intelligence has undertaken to translate 
Important parts of the War Diary of the German Naval Staff. The 
present volume, entitled War Diary of the German Naval Staff, Op- 
erations Division , Part A, Volume 5b is the tenth one of the 
aerie 8 to appear. Other volumes will follow shortly. 

2. The War Diaries, Fart A, are Important because they contain a 
day by day summary of the Information available to the German Naval 
Staff and the decisions reached on the basis thereof. Together with 
the Fuehrer Conferences on Matters Dealing with the German Navy, 1939- 
19^5« which have been published by this office, the War Diaries should 
provide valuable material for the study of naval problems arising from 
total war. The War Diary, Part A, Is also a useful Index to the German 
Naval Archives of World War II; references may be found In the micro- 
film library of Naval Records and Library. 

3. Due to the cost of publication, only a limited number of 
copies could be made; It Is therefore desirable that the copies 
which have been distributed are made available to other offices 
which may be Interested. 



Washington, D. C. 
19^8 



CONFIDENTIAL 
1 Aug. 1942 

Items of Political Importance 

The question of the Second Front in Europe has considerably increased 
the tension at hone, according to observations by Swedish correspond- 
ents in London. Both the caustic criticisms in the Times and the 
growing sharpness voiced in the press and Parliament bear out this 
impression. There is no doubt that this question has confronted the l 
government with its gravest crisis. British political circles place 
the main blame on the vagueness of the statement about the Molotov 
Pact, which has resulted in public insistance on a Second Front, thus 
creating a threat to domestic peace. 

The Russian radio and the Red press have now likewise begun to demand 
a Second Front. 

Great Britain : 

In his radio address to Europe, the First Lord of the Admiralty de- 
clared that the continuation of the war depends on the battle of the 
Atlantic. Without the achievements of the Navy and the Merchant 
Marine, Great Britain would already have collapsed. 

Burma ; 

On 1 Aug. the newly established central civil administration is taking 
ovor. The Japanese Commander in Chief, however, remains the highest 
authority. 

Turkey ; 

In keeping with Turkey's calculating neutrality policy, the Turkish 
Prime Minister told the British Ambassador about his great satisfac- 
tion with the materiel and food supplies furnished by the Allies, and 
asked the U.S. Ambassador about additional wheat shipments from the 
U.S. 

U.S.A. ; 

Roosevelt is preparing a bill introducing universal war service, in 
order to mobilize for the war effort the labor resources of the na- 
tion, which are estimated at 60,000,000. 

The trade agreement between the U.S.A. and the U.S.S.R. has been ex- 
tended till 1943. Negotiations are in progress for a far-reaching 
new agreement which is supposed to grant important advantages to the 
Americans in return for Lend-Lease. 

Portugal: 

From Lisbon comes the persistent rumor that Churchill has flown to 
Russia. 

Sweden : 

The press reports that, following a torpedo attack, Swedish escort 
vessels destroyed 1 Russian submarine by means of depth charges early 
in July. 



-1- 



CONFIDENTIAL 
1 Aug. 1942 

Special Items ; 

The constantly increasing air raid danger and the damage inflicted 
upon the German shipyards on the North Sea and the western Baltic Sea 
make it imperative to continue moving the shipbuilding and repair 
facilities of the navy yards to areas situated farther to the east. 

This, together with the fact that shipyard facilities are inadequate 
to begin with, makes 3,t necessary to utilize fully for the Navy all 
shipyards that are or 1 "' will become available in the East. 

The shipyards thus far taken by us in the Russian theater (e.g., in 
Libau, Riga, Reval) are not very important because their capacity is 
rather limited. Leningrad, on the other hand, has a highly developed 
shipbuilding industry. 

Figures for 1939 show that, out of a total of 15 shipyards and repair 
shops in operation, the 3 largest alone employed as many as 80,000 
workers in 3 shifts. While we can hardly expect these plants to fall 
into our hands undamaged when we take possession of Leningrad, the 
importance which the Naval Staff attaches to them is so great that it 
has decided to make the following requests to the Armed Forces High 
Command, Operations Staff (copies to the General Staff, Army High 
Command, and the Commander in Chief, Air Force, Operations Staff), re- 
ferring to Fuehrer Directive No. 44 (see War Diary 22 July): 

a. It should be confirmed that the directive of the Armed 
Forces High Command, Operations Staff of 19 Sep. 1941, stating that 
the Navy has first claim on all installations of naval character, 
applies also to Leningrad and Kronstadt. 

b. Prior to the expected fall of Leningrad a directive similar 
to the one which was put into effect on a previous occasion for 
Nikolayev should be issued. 

c. After the fall of Leningrad, all shipyards and related 
plants should be exempted from any intended retaliatory measures. 

Copy as per letter 1/Skl III a 1843/42 Gkdos. in War Diary, File 
"Barbarossa II". (See also Conference on the Situation with the 
Chief, Naval Staff on 17 July. ) 



Situation 1 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

The British steamer EMPIRE VOICE, located 120 miles south- 
west of Freetown, sent a QQQ, distress signal, reporting the sighting 
of a suspicious-looking ship; shortly thereafter, she reported having 
received orders to stop. 

The British steamer KALEWA sent an SOS from a location 360 miles 
northeast of Capetown, reporting a collision and requesting immediate 
help . 



I 



-2- 



CONFIDENTIAL 
1 Aug. 1942 

2. Own Situation ; 

No reports have been received from our vessels In foreign 
waters. 

Information on enemy situation is contained in Radiogram 1747. 



II. Situation West Area 

1. Enemy Sit uat ion : 

According to a report by a neutral diplomat in England, 
dated 23 Jul., large numbers of planes are being concentrated on air- 
fields in the eastern and southeastern parts of the country for the 
purpose of launching a massed attack on the Continent. 

The reoort might refer to the large-scale raids on 
Hamburg and Duesseldorf which have taken place in the 
meantime . ' 

According to a telephone message received at 0255 from the political 
Intelligence service of the Foreign Office, a French journalist re- 
ported after midnight about a rumor purporting that the U.S. Embassy 
in Vichy advised American reporters to stand by at their radios on 
1 Aug. since an Anglo-American landing is about to take place. 

If all this talk about an invasion is nothing but 
bluff, as it may actually be, then the spreading of 
such a rumor would prove that the enemy, too, knows 
how to follow through to the minutest detail. 

The photographic reconnaissance, carried out by the 3rd Air Force in 
the forenoon and covering almost completely the southern coast of 
England, did not reveal any particularly striking changes. Air 
reconnaissance over the Channel found convoy and ship movements as 
usual. 

2. Own Situation ; 
Atlantic Coast : 

Nothing particular to report. 

Channel Coast ; 

During the enemy air raid on St. Malo in the afternoon of 
31 Jul., 2 barges and 1 tanker lighter were sunk, in addition to 
damages inflicted on the steamer "H 2 M . 

The PT boat flotillas and the 8th Mine Sweeper Flotilla have been 
transferred according to plan in order to start the mine operations 
"Masuren" and "Samland" from Cherbourg on the night of 1 Aug. 

The artillery group at Le Touquet was ordered to be on the lookout 
for ships from 2300 on, engine noises having been heard for some tine. 

At noon, 50 to 60 enemy planes flew over Fecamp in southerly direction. 



-3- 



CONFIDENTIAL 
1 Aug. 1942 

III. North Sea, Norway, Arctic Ocean 

1. North Sea t 

Enemy Situation : 

Nothing to report. 

Own Situation : 

During the night of 31 Jul., the second part of the mine 
operation "Alba" was executed according to plan. The patrol positions 
off the coast of the Netherlands have been reinforced. Numerous 
flights were made by enemy planes in and out of the area of the Ad- 
miral, Netherlands. Naval anti-aircraft guns shot down 4 planes in 
this area, while 2 more were downed by naval coastal artillery and by 
Air Force anti-aircraft artillery. The 17th and 13th Mine Sweeper 
Flotillas had an engagement with enemy PT boats in the vicinity of 
Zeebrugge and sank one, setting another one afire. Damage to our 
vessels was slight. No casualties occurred. Another ground mine was 
swept off Egmond-aan-Zee. 

Group North has requested the Commanding Admiral, De- 
fenses, North to report whether it is suspected or has 
been observed that additional aerial mines have been 
dropped, and what conclusions can be drawn with regard 
to British intentions. (See Telegram 1523.) 

The 4 vessels of the 12th Patrol Boat Flotilla have completed their 
voyage from the Elbe to Hook of Holland. 

During the day between 1000 and 1700 enemy planes reconnoitered the 
German Bight and the surrounding area. One fighter of the Mosquito 
ty>e (wooden) was shot down near Spiekeroog. Four bombs were dropped 
in the vicinity of the freight station at Wilhelmshaven. For details 
see Telegram 1913. 

In the course of the day, naval anti-aircraft guns shot down 3 planes 
in the Dutch area; a fourth plane was probably shot down by naval 
coastal artillery. In the afternoon, enemy planes raided Flushing. 
The Scheldt shipyard was slightly damaged by bombs. 

Convoy routes and channels in the area of the Commanding Admiral, De- 
fenses, North were swept according to plan. The 21st and 22nd Mine 
Sweeper Flotillas swept mines in mine field 3. 

Mine operation "Alba" (cutting float barrage SW 105) was continued by 
the 8th Motor Mine Sweeper Flotilla in the night of 1 Aug. Transfer 
of 6 vessels of the 2nd Motor Mine Sweeper Flotilla from Dunkirk to 
Ijmuiden and of another 6 from Flushing to Dunkirk was started in the 
same night. 

Orders of the Group concerning laying mine fields for the protection 
of the Dutch coast, in which the wishes of the Army are complied with 
to a large extent, are sent to the Admiral, Netherlands and the 
Commanding Admiral, Defenses North. The Naval Staff, Operations 
Division is notified accordingly. Copy as per 1/Skl 18764/42 Gkdos, 
in War Diary, Part C, Vol. X. 






-4- 



CONFIDENTIAL 
1 Aug. 1942 

2. Norway, Arctic Ocean : 

Enemy Situation : 

Air reconnaissance located 1 battleship, 2 cruisers, 6 
destroyers, and 30 medium- si zed steamers near Reykjavik. It also 
sighted 12 to 15 multi-engined planes. 

Own Situation : 

At 2300 on 30 Jul. and at 0100 on 31 Jul., batteries on the 
Rybachi Peninsula unsuccessfully fired at convoys heading for Petsamo, 
Convoys in the area of the Commanding Admiral, Norway proceeded ac- 
cording to plan, without any incidents. 

In the Arctic .Ocean, submarine U "601" reported as of 31 Jul. the 
sinking of a 2,000 GRT steamer in quadrant AT 7267. Otherwise there 
is nothing to report. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

Nothing particular has been reported. 

2. Own Situation : 

During' the night of 31 Jul. an enemy plane penetrated into 
Denmark, flying over Hanstholm. The air observation center at Hold- 
ing suspects that agents were landed. In the afternoon, the enemy 
carried out reconnaissance flights over Denmark and the western part 
of the Baltic Sea, apparently with a single plane. Fighter defense 
failed to yield results. 

For the order of the Naval Station, Baltic to transfer dock "Bruno" 
from Kiel to Gdynia see Telegram 1447. The operation will start on 
4 Aug. at 0500. 

No incidents are reported in connection with the convoy and patrol 
operations in the area of the Commanding Admiral, Defenses, Baltic 
Sea. 

The Reich Commissioner of Maritime Shipping reports that 18 vessels 
are riding at anchor in Riga, 6 of which are waiting for escort. 

Twelve more ships are waiting for escort in Libau and Windau, and a 
Dutch floating crane is waiting in Memel. The Reich Commissioner has 
asked the Navy to issue a directive to increase the escort service or 
to let him know, should this be no longer possible. 

Mine operations "Seehund l n and "Seeigel 21" have been started in the 
area of the Commander, Mine Sweepers, Baltic Sea. The 1st Motor Mine 
Sweeper Flotilla and 3 landing barges are carrying out the operations. 

Unfavorable weather restricted subchaser operations. Convoys are pro- 
ceeding according to plan. 



-5- 



• CONFIDENTIAL 
1 Aug. 1942 

Mine operations "Seehund 4" and "Seehund 5 M v are scheduled for 2 Aug. 



V. Submarine War f aye 

1. Enemy Situation : 

During the night, the 19th Group was particularly active in 
its reconnaissance operations. Two reports about submarine sightings 
were intercepted. A submarine was attacked with depth charges 160 
miles southwest of Brest. It is assumed that the attacker scored one 
hit. 

In the evening, radio intelligence located a British vessel 200 miles 
west of Gibraltar. 

Several submarine sighting reports from the American coast and the f 

West Indies v/ere intercepted. A submarine which surfaced 75 miles 
northeast of Port of Spain was attacked by a plane. 

2. Own Situation : 

For the success of submarine U "601" see Situation Arctic 
Ocean. 

Group "Pirat" was ordered to give up the search for the convoy in the 
North Atlantic. Eight submarines which are to form a patrol line 
from quadrant AJ 9411 to BC 3465 at 0800 on 6 Aug. are being assembled 
in a group named "Steinbrinck". Submarine tanker U "463" will re- 
fuel the submarines from the western Atlantic in quadrant DD 9455. 

Submarine U "155" reports from the West Indies that she sank the 
steamer CLAN MACNAUGHTON (6,088 GRT) in quadrant EE 94 and a steamer 
of the DALLINGTON COURT class (6,900 GRT) in quadrant EE 86. 

No reports have been received from the Mediterranean. For further 
reports see supplement to submarine situation in War Diary, Part B, 
Vol. IV. 

Regarding the inadequate protection of the submarines in the Bay of 
Biscay, the Commanding Admiral, Submarines reports that, upon his 
urgent demands, submarine defense by the German Air Force will soon be 
improved by reinforcing the units of the Air Command, Atlantic Coast. 
The Commanding Admiral, Submarines has ordered the submarines, when- 
ever possible, to remain submerged while crossing the Bay of Biscay 
on routes other than the approach routes. Along the approach routes 
submarines should proceed surfaced on account of mines, but only in the 
daytime, because at night there is the added risk of detection by 
enemy planes while the submarines would be unable to sight the planes 
in time. The disadvantage of this regulation lies in the fact that 
the approach routes are more exposed when used during the daytime, and 
the enemy may mine them. To combat this danger, the Commanding Ad- 
miral, Submarines suggests that the forces of the Commanding Admiral, 
Defenses, West be reinforced by one flotilla of new mine sweepers. The 
Commanding Admiral, Submarines considers such a reinforcement as 
urgent in view of the prevailing extremely dangerous situation in the 
Bay of Biscay. (See Telegram 1345.) 



r 



-6- 



CONFIDENTIAL 
1 Aug. 1942 

The Naval Staff is investigating whether this proposal can be carried 
out in the face of the severe shortage of available forces. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

During the day, 7 planes were shot down and armed recon- 
naissance was carried out in the West Area. At night, a small number 
of German planes carried out a raid on Norwich, following which large 
fires were observed in that town. 

In the afternoon, enemy planes attacked Hannover and Frankfurt on the 
Main. Both towns suffered damage, and casualties were caused among 
the civilian population. An air raid on Wilhelmshaven was ineffective, 
During the night of 1 Aug., only isolated enemy flights were reported 
over the occupied territories of the West Area. 

2. Mediterranean Theater : 

Our planes raided Malta with satisfactory results. The Air 
Command, Africa carried out night raids. 

3. Eastern Front : 

53 enemy planes were shot down on 31 Jul. and 98 on 1 Aug. 

During the night of 30 Jul., 8 vessels were sunk and 9 damaged on the 
Volga between Astrakhan and Kamyshin. Vessels thus far sunk on the 
Volga total 21,000 GRT . Due to this fact, tugs and barges do not 
move at night, but enter harbors in the evening. 



VTI. Warfare in the Mediterranean and in the Black Sea ; 

1. Enemy Situation, Mediterranean : 

According to radio intelligence, submarines are likely to 
leave Gibraltar again in order to bring supplies to Malta. 

Submarines were sighted south of Pola, off Cape Matapan, and in the 
vicinity of Corfu. 

One destroyer, 1 fast escort vessel, 3 corvettes, 2 submarines, 2 
mine layers, 2 steamers, and 1 harbor tanker were riding at anchor in 
Valletta. 

On 31 Jul. in the evening, 1 vessel bound for Malta was located by the 
Italian Navy by means of radar at a point 140 miles east of Malta. 

Small air reconnaissance forces failed to' observe any ship movements 
in the Eastern Mediterranean on 1 Aug. According to radio intelli- 
gence, 2 cruisers and 2 destroyers are assumed to have departed from 
Haifa. 

2. Own Situation, Mediterranean : 

The Admiral, German Naval Command, Italy resumed his duties 

-7- 



CONFIDENTIAL 



1 Aug. 1942 



in Rone on 27 Jul. 



An enemy submarine made an unsuccessful attack on the Italian gun- 
boat CATTARO south of Pola on 31 Jul. 

3. Transport of Supplies to North Africa : 

The steamer OGADEN entered Tripoli on 31 Jul. The steamers 
IIILANO and AVENTINO entered Benghazi as scheduled and, after un- 
loading, started on their return voyage to Piraeus. In the evening, 
enemy planes attacked the AVENTINO convoy. Otherwise, transports are 
proceeding according to plan, with no incidents to report. 

During the day of 31 Jul., 1,796 tons were unloaded in Tobruk. 

The following German Armed Forces supplies arrived in North Africa in 
July 1942: 



a. From Piraeus and Crete: 



b. From Italy (either direct- 
ly or via Crete) : 



206 men 
214 vehicles 
4,592 tons 

471 men 
994 vehicles 
20,91.4 tons ' 



4. Area Naval Group South : 

Aegean Sea : 

Nothing to report. 

Black Sea : 

Enemy Situation : 

On 31 Jul., photographic reconnaissance located the follow- 
ing enemy vessels: 



In Novorossisk : 
In Tuapse : 



10 small-sized coastal vessels 

2 destroyers, 6 gunboats, 
5 motor mine sweepers, 9 PT boats, 
1 submarine, 1 tanker, 10 steamers 
and a number of small vessels 



Enemy activity leads to the conclusion that he Is aware that our 
forces are being assembled for the Kerch breakthrough. 

On 30 Jul., planes raided the harbor and roadstead of Ivanbaba. Dur- 
ing the night of 30 Jul., naval forces, presumably 3 to 5 destroyers 
or fast gunboats, fired at vessels lying off the coast and at coastal 
batteries in the area of Ivanbaba. When shelled from land, they 
turned southeastward. They are presumed to have laid mines. On 
1 Aug., at 0400, 2 PT boats penetrated into the bay between Ilich 
and Ivanbaba and launched a torpedo attack against the landing barges 
anchored In that area. During the night of 30 Jul., 2 mines were 
observed dropped in the Strait of Kerch off Yeltigen and 1 off Ak 
Burnu. 



-8- 



CONFIDENTIAL 
1 Aug. 1942 

Own Situation : 

Only slight splinter damage was inflicted on the motor mine 
sweepers in Ivanbaba during the enemy air raid in the evening of 30 
Jul. The motor mine sweeper R "163" is out of commission. On 31 Jul. 
the PT boat route was searched for mines. During the attack by 
enemy PT boats in the morning of 1 Aug., the landing barge MFP "334" 
was badly* damaged by a torpedo and grounded. Attempts are being made 
to lay a net barrage off Ivanbaba, Intensified enemy activity is 
quite effective, due to our lack of anti-aircraft protection, air 
reconnaissance, and fighter protection. 

It is planned to have 4 boats of the 1st PT Boat Flotilla lay river 
mines type C in the southern approaches of the Kerch Strait on the 
night of 1 Aug. 

Special Items : 

a. In reply to an inquiry by the Naval Staff Operations Di- 
vision (see War Diary 18 Jul.), the Italian Naval Staff has declared 
itself basically in agreement with the proposed transfer to the 
Caspian Sea of part of the Italian forces (surface vessels) employed 
at present in the Black Sea. The Italian Naval Staff is, however, 
unable to supply any further vessels for the Black Sea area. 

Naval Group South, the Admiral, Black Sea, and the Quartermaster 
Division of the Naval Staff are being notified to this effect via 
Telegram l/Skl 18741/42 Gkdos. Copy in War Diary, Part C, Vol. 
XIV a. 

b. According to the report from Group South, Antonescu has ex- 
pressed his agreement, for the time being orally, to the removal of 
battery "Tirpitz", and has requested that 1 medium railway artillery 
battery be emplaced in Constanta. Group South, in agreement with the 
Naval Staff Quartermaster Division, Fleet Branch, is endorsing this 
measure. In the Group's opinion, a further favorable development of 
the Army operations will make it unnecessary to transfer battery 
"Tirpitz" to the Russian Black Sea area, and the 20.3 cm battery 
captured at Ochakov will suffice for Sevastopol. A written confirma- 
tion by Antonescu has been promised. 

The Naval Staff Quartermaster Division is taking "up the 
matter in accordance with the directive by the Commander 
in Chief, Navy. (See War Diary 20 and 21 Jul.) 



VIII. Situation East Asia 
Nothing to report. 



-9- 



CONFIDENTIAL 
1 Aug. 1942 

DC, Army Situation 

1. Russian Front ; 

Army Group A : 

Combat activities against' reinforced enemy rear guards are 
reported from south of the Yelets sector. On the remaining sectors 
of the Caucasian front, the advance of our troops continues accord- 
ing to plan. Our forces occupied Remontnaya at the point where the 
railway crosses the river Sal. 

Army Group B : 

Our troops reached the river Chir northwest of Chirskaya 
and the river Don north of Kalach. Near Serafimovich, Italian troops 
threw the enemy back as far as the Don river. 

Central Army Group : 

On the entire 9th Army sector from Rzhev up to Byeloi, the 
enemy carried out strong containing attacks which resulted in isolated 
penetrations and set off counterattacks. 

Northern Army Group ; 

No noteworthy fighting has been reported. 

2. Finnish Front ; 

Nothing noteworthy occurred. 

3. North Africa ; 

No fighting to report. Enemy planes are intensifying their 
attacks on our troops. 

{HKHHHHHHHKBHMKMKHHHHKHHHt 



% 



-10- 



CONFIDENTIAL 

2 Aug. 1942 
Sunday 

Items of Political Importance 

The attitude of the U.S. Government in the question of the Second 
Front in Europe is being influenced to an increasing extent by the 
impending elections. The Daily Mall reports that, strictly speaking, 
there is no enthusiasm whatsoever in the United States for the 
establishment of a Second Front, since every sensible person can see 
that it is an impossible demand in view of the shortage of shipping 
space. In connection with a Second Front, American newspapers dis- 
cuss the question of a unified command, for which they mention in the 
first place De Gaulle, then MacArthur, Marshall, and MacNaughton. In 
addition to the objections already raised against a Western Front, 
they point to the fact that even Hitler did not risk an invasion. 
Among the more important newspapers in Great Britain, the Times and 
the News Chronicle alone continue to advocate the Second Front. In 
so doing, the Times places special emphasis on the dangerous effects 
which the failure to relieve the Soviets might have on the political 
situation at home. All the other press organs have shifted com- 
pletely over to the line apparently dictated by the British Govern- 
ment . 

As for the enemy's shipping situation , an increasing number of 
American public officials point to the decisive military importance 
of this problem. Contrary to the more frequent expressions of 
apprehension that the speed in building new ships cannot keep pace 
with the ship losses, the U.S. Navy Department states that during the 
month of July the U.S. shipyards completed 71 vessels totalling 
790,000 tons. (These are not GRT.) 

According to United States News, German reports about sinking of 
ships in American waters are not far from the truth. 



Situation 2 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

South Atlantic ; 

A British steamer sent an SSS signal reporting sighting a 
submarine 70 miles east of Lagos. 

Indian Ocean : 

The Consulate in Lourenco Marques reports that 2 convoys 
are scheduled to leave Durban on 4 Aug. According to an agent's re- 
port, 2 convoys of 35 to 40 ships each are scheduled to leave Cape- 
town for Egypt every month. An agent in the service of the same 
Consulate reports that the auxiliary cruiser CARNARVON CASTLE was 
sunk. 

No other facts are known to us in connection with this 
sinking. 



-11- 



CONFIDENTIAL 
2 Aug. 1942 

2. Own Situation : 

No reports have been received about our vessels. 

Blockade-runner V7ESERLAND was ordered by the Naval Staff Operations 
Division, Merchant Ships, as per 1/Skl.I'K 1292/42 Gkdos, Chefs, of 
18 Jul. 1942, to proceed to Japan by way of Cape of Good Hope or, if 
necessary, by way of Cape Horn. Copy no'j 4 in War Diary, Part C, 
Vol. I. 



II. Situation West Area 

1. Enemy Situation ; 

Interrogation of the crew of the motor gunboat n 328", which 
was sunk in the Channel on 21 Jul., revealed the following: In July 
there were stationed in Dover 1 motor gunboat division of 4 boat3, 

1 motor torpedo boat flotilla, and 1 mine layer division, but no de- 
stroyers. On 21 or 22 Jul., motor torpedo boat "201 w was sunk during 
an engagement at 0100. German air raids on Birmingham in June 1942 
did considerable damage. Less successful is the shelling of the long- 
range battery on the Channel coast. The radio station southwest of 
Dover was presumably destroyed prior to April 1942. So far, gunfire 
against convoys consisting of small vessels in the Channel has proved 
ineffective. For details see Telegram 1800. 

2. Own Situation : 
Atlantic Coast : 

One mine was swept by a mine-sweeping plane off Lorient. 

Our forces started laying ground mines with electric firing devices 
north and south of the entrance to the naval harbor of Brest. For 
the corresponding message by the Admiral, French Coast, see Telegram 
1640. 

Channel Coast : 

At 0015, the battery group at Le Touquet opened fire on 6 
enemy PT boats that had been located. The boats retaliated with 
counterfire and turned away. 

Mine operations "Masuren" and "Samland" have been executed according 
to plan from Cherbourg. Remote escort was furnished by the 2nd PT 
Boat Flotilla consisting of 7 boats. At 0242, the 8th Mine Sweeper 
Flotilla, while approaching Cherbourg, had an engagement with 8 to 
10 enemy motor gunboats and motor torpedo boats and 1 light gun 
carrier. Two enemy vessels were reported as probably destroyed. Our 
casualties were light. Naval Commands at Cherbourg were on second 
degree alert from 0300 to 0400. The 2nd PT Boat Flotilla has 
arrived at Cherbourg. The. 3rd Torpedo Boat Flotilla has entered 
Lezardrieux and is going to transfer to St. Malo during the night of 

2 Aug. In view of the fact that after last night's operation torpedo 
boat T "4" is again out of commission, Group West repeats its urgent 
request for transfer of an extra boat to the West Area. 



♦ 



-12- 



CONFIDENTIAL 
2 Aug. 1942 

The Naval Staff recognizes the need for such a measure. Further 
torpedo boats will be allotted to Group West as soon as possible. 
At present* no extra boats are available. Allocations of boats for 
torpedo training, as well as for open water firing in Trondheim, are 
indispensable for submarine warfare. 

See Telegram 1818 for communications notifying Group West, Group 
North, the Fleet, and the Commander, Destroyers to this effect. 

Route "Herz" between points 232 and 234 has been temporarily closed 
on account of mines. 

For report of the Admiral, French Coast concerning the laying of a 
mine field in the outer approaches to Boulogne, see Telegram 1430. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea .: 

Enemy Situation : 

Nothing to report. 

Own Situation : 

Mine operation ""Alba" (barrage 105) continued according to 
plan. Work on mine field 3 was completed (see Telegram 2245). Mine 
detonating vessels succeeded in removing mines off Egmond-aan-Zee, 
Den Helder, Terschelling, and Norderney. 

The 6 vessels of the 2nd Motor Mine Sweeper Flotilla have completed 
transfer from Ostend to Flushing and the other 6 have transferred 
from Flushing to Dunkirk. 

On' the afternoon of 2 Aug., enemy planes were active over Scheveningen 
and the German Bight between Norderney and Foehr. Naval anti-air- 
craft guns shot down 2 enemy planes during the raid on Scheveningen. 

2. Norway, Arctic Ocean : 

Enemy Situation : 

Photographic reconnaissance over Iceland located 1 battle- 
ship of the KING GEORGE V class, 1 heavy cruiser, apparently of the 
CUMBERLAND class, 1 DIDO-class cruiser, 7 destroyers, 41 steamers, 
and 3 tankers (totalling approximately 185,000 to 190,000 GRT) in 
Hval Fjord, and 14 steamers totalling about 11,500 GRT in. the 
Reykjavik roadstead. 

Evidently the assembly of convoy PQ, 18 has been com- 
pleted. 

The Japanese Navy reports through the Naval Attache in Berlin that on 
26 Jul. a Russian convoy of unknown strength departed from Petro- 
pavlovsk via the northern route. 

This substantiates the reports so far received. 



-13- 



CONFIDENTIAL 
2 Aug. 1942 

Own Situation ! 

There is nothing particular to report from the area of the 
Commanding Admiral, Norway. 

Admiral Schmundt reports that the Admiral, Arctic Ocean has sur- 
rendered his duties to Rear Admiral Thiele. 

No noteworthy reports have been received from the submarines in the 
Arctic Ocean. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 
Nothing to report . 

2. Own Situation : 

Mine operation "Duesseldorf " (experimental barrage of rack 
mines type A in the Skagerrak) is being carried out by submarine U 
"119". 

Mine-detonating vessels serving as escorts swept 1 ground mine off 
Korsoer. Another mine was swept by a Danish torpedo boat along the 
Nyborg ferry route. 

Group North points out to the Commanding Admiral, Defenses, Baltic 
Sea and Naval Station, Baltic that increased watchfulness is necessary 
due to the facts that the enemy is dropping so few mines in the area 
of the Commanding Admiral, Defenses, Baltic Sea, particularly in the 
Sound, and that an enemy directive has become known concerning the 
escape of Russian submarines from the Baltic Sea. (See Telegram 
1712.) 

In the area of the Commander, Mine Sweepers, Baltic Sea, mine opera- 
tions "Seehund I" and "Seeigel XXI" were broken off because of bad 
weather which also prevented mine-sweeping operations. 

Mine sweeper M "16" ran aground in the vicinity of Porkkala. One 
drifter of the coastal patrol flotilla was hit by a mine north of 
Aegna, probably in the "Nashorn XII" minefield, and sank after being 
towed into Reval. 

Transports are proceeding according to plan. 

The Commander, Mine Sweepers, Baltic Sea reports that the convoy 
situation is extremely critical due to the shortage of escort vessels. 
Only if the order requiring compulsory escort is revoked, can the 
congestion of ships in Riga and Libau be relieved. The risk of pro- 
ceeding unescorted as suggested is considerably reduced as long as, 
on calm days, vessels of the 31st Mine Sweeper Flotilla occupy 
positions along route "Braun". (See Telegram 2020.) 

In accordance with the suggestion of the Commanding Admiral, Baltic 
Countries, the Naval Staff Operations Division has proposed to the 
Air Force Operations Staff that one bomber squadron be supplied for 
the Gulf of Finland. Due to the shortage of planes, the Air Force is 



-14- 



CONFIDENTIAL 



2 Aug. 1942 



unable to comply with this suggestion. It intends to carry out the 
bombing missions in that area as they come up, weather and ground 
conditions permitting. 

The Naval Staff is notifying Group North and the Commanding Admiral, 
Baltic Countries accordingly. 



V. Submarin e Warfare 

1. • Enemy Situation : 

According to intelligence reports from Spain, a convoy with 
troops and materiel is expected to arrive in Gibraltar between 5 and 
Aug. This is apparently the convoy from the U.S. en route to 
Alexandria which has already been announced. (See War Diary 28 Jul.) 

Reports on submarine attacks in the Trinidad area and in the Florida 
Strait were intercepted. 

2. Own Situation ; t 

At 0950, submarine U "552" established contact with a con- 
voy in quadrant BC 5955. All submarines of the former groups "Wolf" 
and "Pirat" have received orders to attack that convoy. Three more 
boats made temporary contact with the convoy in the course of the 
day. Submarine IT "552" reports that she has torpedoed 2 steamers 
totalling 16,000- GRT. The operation is being continued. 

4 

Two submarines stationed in the Reykjavik area are being notified 
that convoy PQ, 18 will probably depart from Hvalsund during the first 
week of August. Attempts should be made to intercept the convoy in 
quadrant AE 53-59. 

Submarine "Kirschbluete" has reported her position and is expected to 
reach the center of quadrant 3F 4790 on 5 Aug. The boat is bound for 
Lorient. 

No successes have been reported by the submarines off the American 
East Coast. 

In the West Indies, submarine U "160" is at the moment in contact with 
a convoy of 6 to 8 large steamers In quadrant EE 8772. Anti-aircraft 
fire is forcing the submarine to withdraw. She reports having sunk • 
the steamer TREMINNARD (4,694 GRT) and taken aboard the captain. 

Submarine U "509" was damaged by aircraft bombs in quadrant DM 1732 
and withdrew for repairs. 

Strong defense action prevented submarine U "134" from firing at a 
convoy of 6 steamers in quadrant DM 6439. 

Increased tanker traffic has been observed between Trinidad and South 
American harbors. 

Submarine U "565" sank another auxiliary sailing vessel in the 
Mediterranean. 

For further details see supplement to the submarine situation in War 
Diary, Part B, Vol. IV. 



-15- 



' CONFIDENTIAL 
2 Aug. 1942 

VI. Aerial Warfare 

1. British Isles and Vicinity 1 

During the day, Bridgeport, York, Lincoln, and other 
localities were bombed with observed success. On the night of 2 Aug. 
our planes raided Bradford. 

One FW 200 raided and obviously damaged the radio station Hoefn on 
Iceland. 

Bad weather (thunderstorm) limited reconnaissance operations over the 
sea area around the British Isles. 

2. Mediterranean Theater ; 
Our planes raided Malta. 

3. Eastern Front : 

Photographic reconnaissance of the Volga river located 77 
freight barges, 17 motor barges, 8 paddle tugs, and small vessels in 
Kuibyshev. More than 60 cargo vessels were counted between 
Kuibyshev and Marks. 

No further reports have been received. 



VII. Warfare in the Mediterranean and in the Black Sea 

1. Enemy Situation, Mediterranean : 
Nothing to report. 

2. Own Situation, Mediterranean : 

During the night of 31 Jul., bombs were dropped on the 
motor ship M0NVIS0 in Navarino. The raid was ineffective. During 
that night, as well as on the night of 1 Aug., enemy planes raided 
Tobruk. The tug MAX BEHRENDT was again damaged. The Italian tug 
ALATO suffered heavy damage. As a result of enemy raids on Bardia 
on the night of 1 Aug., the motor mine sweeper R "9" and the tank 
landing vessels F "347'* and "356" burned up and sank. . The motor mine 
sweeper R "11" was badly damaged and had to be brought ashore. 
Casualties were light. 

The enemy's superiority in the air is really making 
itself felt. 

3. Transport of Supplies to North Africa ; 

The steamer ISTRIA entered Tripoli on 1 Aug. On the even- 
ing of 2 Aug., enemy planes attacked the convoy of the steamer 
TERGESTEA proceeding from Patras to Benghazi. Details are still 
lacking. Otherwise, the transport of supplies proceeded without in- 
cidents. 

The German Commanding Officer, Supply and Transports, Italy and 
Italian authorities have agreed on the following ba^lc program for the 



-16- 



CONFIDENTIAL 
2 Aug. 1942 

transport of supplies: 

Supplies to .be brought from the Italian area: 

a. To Tobruk - 2 large vessels per week, with 16 ^ ,000 tons of 
German and 16,000 tons of Italian supplies per month . 

b. To Benghazi - 4 ships every week, with 16,000 tons of 
German cargo per month. 

c. Of the above (paragraph b.), 8,000 tons are to be shipped 
every month to the Tobruk-Marsa Matruh area by coastal vessels. 

4. Area Naval Group South : 

Aegean Sea : 

Nothing to report. 

Black Sea r 

Enemy Situation : 

Radio intelligence reports only isolated movements of naval 
forces on 1 and 2 Aug. In addition to 8 submarines, 1 flotilla 
leader and 1 destroyer were observed at sea. 

On 30 Jul. and on the morning of 31 Jul., 2 gunboats shelled 
Kagalnik on the Don delta. On 31 Jul., in the evening, a PT boat 
passed through the Kerch Strait. 

Own Situation : 

No success was scored when our artillery fired at the 
enemy PT boat in the Kerch Strait. 

On the forenoon of 1 Aug., the 1st Landing Flotilla, composed of 10 
landing barges, arrived at Sevastopol. Three of the barges will re- 
main there, while 7 transferred at noon to Balaklava. From Balaklava, 
5 of these barges are to break through the Kerch Strait during .the 
night of 2 Aug. The 1st Landing Flotilla will cover the operation 
in southerly direction. 

Three Italian subchasers arrived in Yalta on 31 Jul. 

Convoy operations in the Black Sea are proceeding according to plan. 
Transport of supplies In the Sea of Azov will be feasible as soon as 
the channels have been searched as far as Azov. 



VIII. Situation East Asia 

On 1 Aug., Sydney broadcast another submarine warning for an 
area 50 miles south of that harbor. 



-17- 



CONFIDENTIAL 
2 Aug. 1942 

IX. Army Situation 

1. Russian Front : 

Army Group A t 

Despite Increased resistance, our offensive in the 
Kushchevskaya area continued to gain ground. Following the enemy 
retreating in a southeasterly direction, our infantry and panzer 
divisions reached the line Yekaterlnovskaya-Dmitriyevskaya- 
Pregradnoye east of Kushchevka. East and northeast of Salsk the 
mopping-up of the Yegorlyk sector continues. 

Army Group B ; 

Kotelnikovo has been captured. North and northwest of 
Kalach, the enemy is carrying out heavy armored attacks on a wide 
front. For the major part, these attacks have been repulsed. In the 
Don river bend southeast of Kletskaya, our planes counterattacked the 
enemy tanks. Sixty tanks were destroyed. The Italian mobile di- a 

vision repelled enemy attacks in the area south of Serafimovieh. The 
enemy still holds isolated positions west of the Don* Enemy attacks 
near Boguchar, Svoboda, and south of Yelets were repulsed. 

Central Army Group ; 

Heavy enemy attacks in the Rzhev area continue with un- 
diminished intensity. Enemy attacks are likewise reported from the 
area north and south of Byeloi. 

Northern Army Group : 

Our offensive on the Volkhov front is making good progress. 
South of Leningrad, the enemy succeeded in penetrating our lines 
s omewhat . 

2. Finnish Front : 

Assault detachments and reconnaissance patrols were active 
on the southeastern front. 

3 . North Africa f | 
Reconnaissance and artillery activity. 



-18- 



CONFIDENTIAL 
3 Aug. 1942 

Items of Political Importance 

In connection with the question of the Second Front in Europe , diplo- 
matic circles abroad interpret Franco's and Suner's intention to take 
a few weeks' vacation as a sign that the Spanish government, too, 
discounts the possibility of a European invasion in the very near 
future . 

The Observer is of the opinion that very heavy air raids on Germany, 
such as have frequently been demanded, can only serve as a prepara- 
tion but not as a substitute for a Second Front. 

For press opinions from Great Britain and America see Political Re- 
view No. 179, Paragraph 1. 

India: 

The Executive Committee of the Congress Party is reported to have 
asked Churchill for assurance that the Cripps proposals will not be 
withdrawn after the war. Gandhi is expected to meet with the Moslem 
leader JInnah. In a statement in the Hari ja n , Gandhi said that a 
free India could play a decisive part in the war on the side of the' 
Allies. 

Canada ; 

Canada will maintain her diplomatic relations v/ith France although, 
according to the statement of her Prime Minister, Canada can have no 
respect for Laval as a mouthpiece of Germany. 

Turkey ; 

A newspaper article by Representative Attay, dealing with the famine 
in Europe during the coming winter, expresses the view that the Allies 
are the ones who have the main power to decide whether there will be 
peace or war, but there are no indications among the Allies that hopes 
for peace which have been aroused by the German victories in Russia 
are justified. 

Argen tina ; 

The British press is trying to frighten Argentina with the specter of 
isolation. As an argument, the press points to a change in orienta- 
tion of the foreign policy in Chile. 

Japan ; 

Military circles in Chungking expect that Japanese hostilities 
against Russia will start during the second half of August. 

Chin a: 

The U.S. representative has assured the government that military aid 
to China will be increased. 



■19- 



CONFIDENTIAL 
3 Aug. 1942 

Conference on the Situation with t,he Chief, Naval Staff 
In a Very Restricted Circle : 

I. On 30 Jul., the Naval Staff, complying with a request of Group 
North (see V/ar Diary 26 Jul.), asked the Armed Forces High Command, 
Operations Staff, for approval of the transfer of German coastal 
mine-laying boats and Italian submarine chasers from Lake Ladoga to 
the Gulf of Finland. FJpi» copy see 1/Skl I op 1467/42 Gkdos. Chefs, 
in V/ar Diary, Part C, Vol. III. Surprisingly, the Armed Forces High 
Command, Operations Staff has denied the request, giving as a reason 
the fact that the Finnish Marshal considers a transfer of the German 
and Italian boats from Lake Ladoga undesirable. 

It is possible that the Armed Forces High Command, 
Operations Staff wants to keep these vessels ready for 
use in our operation against Leningrad in September 
when the enemy may again use large vessels which could 
also be effectively attacked with mines. 

II. Showing the submarine chart to indicate the mines laid in the 
Chesapeake Bay, the Chief, Naval Staff points out that the Portuguese 
steamer NYASSA carrying German passengers will leave Baltimore on 8 
Aug. This fact is known to the Naval Staff, Operations Division, and 
it has already communicated to the Foreign Office those routes from 
Baltimore which are considered safe. While mentioning the steamer 
NYASSA, the Naval Staff, Operations Division will add a reminder that 
the Portuguese government, too, should be informed about these routes. 

III. The Chief, Communications Division, Naval Staff reports on the 
installation of radar equipment in operational submarines and the 
assignment of enlisted personnel of the Communications Equipment Ex- 
perimental Command to aid the work in the shipyards. 

IV. The Chief, Quartermaster Division, Naval Staff reports that the 
Italian Navy has made another request for 25,000 tons of fuel oil. In 
the opinion of the Chief, Quartermaster Division, the Italian Navy has 
been receiving 50,000 to 60,000 tons from Rumania every month during 
the last few months according to schedule. Our situation does not 
permit any further allocations from the Navy's quota. For this 
reason, the inquiry of the Armed Forces High Command in connection 
with this Italian request has been answered in the negative. 

The Chief, Naval Staff agrees. 

From 3 to 6 Aug., the Chief, Naval Staff will visit France in order 
to inspect the defenses against enemy landings in that country. The 
Deputy to the Chief of Operations Branch will participate in the in- 
spection tour as representative of the Operations Division. 



Special Items : 

I. Basing its considerations on the experience gained in the war, as 
well as on the conclusions drawn from the demonstration of landing 
vessels to a Japanese commission, the Naval Staff, Operations Division 
has reexamined the plans and objectives of the Navy in this field. 



-20- 



CONFIDENTIAL 
3 Aug. 1942 

The results have been transmitted to the Naval Staff, Quartermaster 
Division, -with the request to determine and make known the respective 
competencies of Army and Navy according to the problems posed, and to 
develop in cooperation with the Army, the plans and further measures 
in line with these propositions. 

For copy see 1/Skl I opa 18329/42 Gkdos. in War Diary, Part B, Vol.V. 

II. On' 20 Jul., Group North submitted its final report on operation 
"Roes sel sprung". 

The Naval Staff agrees in general with the conclusions laid down in 
this report and remarks as follows: 

1. It has been established that the convoy was broken up be- 
fore our naval forces appeared on the scene. The reasons are assumed 
to be the following: 

a. The British do not send their heavy vessels into areas con- 
trolled by our bomber forces as long as attack conditions for the 
latter are favorable. For this reason they had to leave the tactical 
protection of the convoy to the cruiser group. In view of the con- 
centrated air attack, the cruisers were unable to give the ships the 
amount of anti-aircraft protection necessary to hold the convoy to- 
gether. Poor convoy discipline on the part of the numerous American 
steamers might likewise have been a factor. Thus, under the blows 

of the attack by German planes, the convoy disintegrated more and more 
Since the fuel reserves. of the cruisers were probably not adequate 
for prolonged escort, and since after the disintegration of the con- 
voy the usefulness of the cruisers was outweighed by the danger from 
submarines and planes, the cruisers soon left the convoy. 

The destroyers alone, which according to prisoners' statements, re- 
fueled during their voyage from the tankers in the convoy, did not 
suffice to protect the dispersed ships which thus became the prey of 
the submarines and the airplanes. 

b. Inadequate fuel was probably another factor in determining 
the action of the heavy ships. It is unlikely that these ships were 
able to refuel 'at sea. Thus, since they had to return home, these 
ships had reached the limit of their range on 5 Jul. 

2. The route chosen by convoys sailing from Iceland to the 
Russian harbors in the Arctic Ocean will at all times be as far away 
as possible from the mainland coast, following the ice boundary. The 
fact that during the coming months the ice boundary will shift farther 
to the north will reduce the prospect of successful attacks by our 
Air Force. On the other hand, the route which the enemy ships will 
have to follow will be considerably longer, so that the endurance of 
the escort forces will have to be even greater than before. If the 
enemy succeeds in increasing the speed of the convoys, the higher 
average speed, which is more economical for the naval forces, will 
partly compensate for the greater distance. Nevertheless, the enemy 
will be compelled to undertake measures to arrange either for reliev- 
ing the escort forces or for refueling them. One such possibility is 
offered by the circumstance that the coast of Spitsbergen, with its 
anchorages, is ice-free. 

The 4 destroyers sighted by our air reconnaissance in the area 120 
miles southwest of Spitsbergen on 22 Jul. 1942 permit the assumption 
that they were sent to take over convoys coming from the east. 



-21- 



CONFIDENTIAL 
3 Aug. 1942 

3. In any case, we have to county with the fact that, should 
any further convoys pass by in August f, 

a. They will be within the range of our bomber forces for only 
a short distance 

b. They will not : ^fesperse again, contrary to all rules, before 
they are in safety •^ \ 

It nay therefore be assumed that the chances for our submarines and 
air forces will no longer be as good as they were during the attack 
on convoy PQ 17. Thus, the significance of the naval forces in de- 
stroying enemy supply vessels remains unaffected. 

4. Prom early September on, due to the longer hours of dark- 
ness, conditions for submarine operations will again improve for a 
short period, until stormy weather and ice will make submarine attacks 
too difficult and, in the end, impossible. 

The naval representatives at the Fuehrer Headquarters, 
at the Armed Forces High Command, Operations Staff, 
at the Air Force Operations Staff, and at the General 
Staff, Army High Command have been advised of the re- 
port of Group North and of the Naval Staff's reaction. 

See 1/Skl I op 139G/42 Gkdos. Chefs, in Files "Roesselsprung". Mar- 
ginal note: (Not there). 

On 2 Aug., Group North, referring to Paragraph 4 of the Naval Staff's 
reply, called attention to its suggestion of 7 Jul. 1942, in the sit- 
uation report about the Hybachi Peninsula operation, dealing with the 
elimination of Murmansk and of the entire Kola area by attacking 
Kandalaksha. 

Since the intentions of the Armed Forces High Command, Operations 
Staff in this direction have already been made known, no action is to 
be taken. 



Situation 3 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

According to intelligence reports from Spanish and French 
sources, it is feared that planes flying from Freetown will raid Port 
Etienne. Defense measures have been ordered. 

Otherwise, there is nothing to report. 

2. Own Situation : 
Nothing to report. 



-22- 



CONFIDENTIAL 



3 Aug. 1942 



II. Situation West Area 

1. Enemy Situation : 

The Admiralty reports about an allegedly successful en- 
gagement which occurred between a formation of British light coastal 
patrol vessels and German vessels directly off Cherbourg on the night 
of 1 Aug. The report states that 2 German PT boats were sunk and 
other German vessels damaged during the engagement. Two German tor- 
pedo boats are reported to have been hit. Ho damage and only 2 minor 
casualties were suffered "by the British forces! 

The engagement in question was the one involving the Gth Mine Sweeper 
Flotilla (see War Diary 2 Aug.) which had reported 2 enemy vessels as 
probably destroyed, while sustaining only light casualties itself. 

This is another example of the unreliability of ob- 
servations during night engagements. 

Air reconnaissance found ship movements and the number of ships 
anchored along the southern coast as usual. 

Radio intelligence intercepted a message to an enemy command post re- 
porting the position of a German force in the South Foreland area. It 
is assumed that mines have been laid between Boulogne and Le Touquet. 
An unidentified vessel reported sighting ship wreckage in the area of 
Lowestoft. 



2. 



Own Situation: 



Atlantic Coast : 

A mine-sweeping plane removed one mine off Lorient. 

The Naval Staff recognizes the demand of the Commanding Admiral, Sub- 
marines for reinforcement of the forces of the Commanding Admiral, 
Defenses, West in the Bay of Biscay by 1 flotilla of new mine 
sweepers. 

For the time being, the general shortage of vessels makes it im- 
possible to realize this demand by drawing on forces of Group North. 
For this reason, the Naval Staff requests Group West to investigate 
the possibilities of meeting these just demands of the Commanding Ad- 
miral, Submarines by a shift in the forces available within the area 
of the Commanding Admiral, Defenses, West. (Replacements of auxiliary 
mine sweepers on the western coast of France by new mine sweepers 
operating in the Channel.) 

For the corresponding directive to Group West and to the Commanding 
Admiral, Defenses, West, with copy to the Commanding Admiral, Sub- 
marines, see Telegram 1801. 

Channel Coast : 

On the night of 2 Aug., the 3rd Torpedo Boat Flotilla 
transferred to St. Malo. 

The 4th Motor Mine Sweeper Flotilla had an engagement with British PT 
boats off Cape Gris Nez at 0152 and arrived with all its boats in 
Boulogne at 0230. Details are not yet known. 



-23- 



CONFIDENTIA L 
3 Aug. 1942 

III. North Sea f Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

There was little air activity. Air reconnaissance reports 
voy movements along the eastern coast a,s, usual. 



con 

Own Situation: 



» ' 



During the night o«f 2 Aug., mine operation "Alba" was 
carried on as scheduled by laying the mine field 104. On that 
occasion, at 2345, the 8th Motor Mine Sweeper Flotilla sighted 4 
enemy PT boats in quadrant AN 8516. The enemy boats avoided battle 
(see Telegram 1100). 

On that night, just as during the night before, patrol positions 
along the Dutch coast were held by stronger forces. 

Mine-detonating vessels have swept 3 ground mines. Convoy and 
channel-sweeping operations in the area of the Commanding Admiral, De- 
fenses, North are proceeding according to plan with no incidents to 
report . 

At 1355, 20 Spitfires, carried out a low-level attack on Flushing. 
Naval anti-aircraft shot down 2 planes. 

In the afternoon, enemy reconnaissance planes were reported over the 
German Bight. Our fighters failed to score any success. 

2, Norway, Arctic Ocean : 

Enemy Situation : 

The Military Attache in Stockholm confirms the intelligence 
report stating that the main base of the Norwegian troops in Scotland 
is in the Wick area. He adds that the increased activity in northern 
Scotland and on Iceland presumably points to preparations for an 
offensive against northern Norway. 

According to an intelligence report from Iceland of 25 Jul., an agent 
observed a convoy of 18 steamers enter Hval Fjord on 18 Jul. Several 
of the ships carried planes and tanks as deck cargo. Further ships 
are said to have arrived between 18 and 25 Jul. (This is a confirma- 
tion of other reports received about the assembly of convoy PQ, 18.) 

Air reconnaissance over the North Sea failed to yield results. 

Own Situation : 

The 3rd row of the net barrage in Aasen Fjord has been laid. 
Enemy reconnaissance planes flew over the area of Trondheim, evident- 
ly on a routine inspection of the berths in that area. 

Convoy operations in the area of the Commanding Admiral, Norway are 
proceeding as scheduled. 

Group North has ordered the immediate release of the 5th Mine Sweeper 
Flotilla to enter the shipyards in Holland. For the Group's further 
directive concerning the distribution of naval forces in the 



-24- 



CONFIDENTIAL 
3 Aug. 1942 

Norwegian area, see Telegram 1259. 

Submarine U "601" gave the following brief report on the operation 
off the Novaya Zemlya coast: between 21 and 24 Jul. no ship move- 
ments were observed off the Matochkin Strait. For copy see 1/Skl 
18988/42 Gkdos. in War Diary, Part B, Vol. IV. 

Special Items : 

A 

On 27 Jul., the Naval Staff, Hydrographic and Meteorological Division 
issued its directions for operations orders and meteorological pro- 
jects in 1942-1943. To ensure the meteorological service in the north 
area, the Chief of the Meteorological Branch of the Naval Staff has 
planned and prepared the following 4 operations for the period 1942- 
1943: 

(!•). "Holzauge" 

(2). "Knospe II" 

(3). "Hessen" ■ 

(4). "Zenith" 

By these operations, a network of weather stations is to be erected 
in the north area, which would ensure better weather reporting than 
thus far available. 

For copy of the corresponding instruction of the Naval Staff, Hydro- 
graphic and Meteorological Division see l/Skl 18404/42 Gkdos. in War 
Diary, Part C, Vol. II. 

To this, Group North reports that operation "Holzauge" will definitely 
be executed. The date of departure from northern Norway depends on 
the convoy situation and air reconnaissance in the Arctic Ocean. 

Decision about operation "Knosoe II" cannot be made until just before 
its start, since nobody can as yet foresee in what way the situation 
in the Arctic Ocean will develop. 

Concerning the operations "Hessen" and "Zenith", Group North requests 
that, both for operational reasons and in view of the general enemy 
situation, no further weather ships be left at sea for use as relay 
stations. If the enemy can locate our vessels, he will undertake 
countermeasures which may interfere with our decisions. On the whole, 
the v/eather service of our Air Force and of the submarines at sea has 
so far proved adequate. According to previous experience with 
"Knospe", communications with "Holzauge" appear ensured even without 
rslay stations, except during periods of considerable magnetic dis- 
turbances. (See Telegram 1042.) 

The Naval Staff, Operations Division will state its position later. 



IV. Sk agerr ak, Baltic Sea Entrances, Baltic Sea 
1. Enemy Situation : 

Nothing to report. 

-25- 



CONFIDENTIAL ' 
3 Aug. 194* 

2. Own Situation : 

No incidents have been reported in connection with convoy 
and patrol operations in the area of the Commanding Admiral, Defenses, 
Baltic Sea. 

Group North intends to dispense with the mine-laying operations 
"Se villa grosse Ausfuehrung", "Sevilla", and "Skarskhorn" in the 
Baltic Sea entrances which were planned in connection with operation 
"Barbarossa". Instead, it intends to place the mine carrier OTTER, 
which originally was to be used in these operations, together with 
her load of mines, immediately at the disposal of the Commander, Mine 
Sweepers, Baltic Sea, in order to provide him with the necessary re- 
serves. Group North asks the Naval Staff, Operations Division for 
approval at its earliest convenience. 

Group North has already returned the mines designed for use in the 
mine-laying operations "Grundsee Ost und West", "Toledo", "Granada 
grosse Ausfuehrung", "Granada", and "Grauer Ost" to the Mining and 
Barrage Inspectorate, and reports that they are now available for 
other purposes. (See Telegram 2329.) 

A decision by the Naval Staff will follow. 

Mine Operation "Seeigel XXII" in the area of the Commander, Mine 
Sweepers, Baltic Sea has been executed according to plan. Operation 
"Seehund I" was broken off on account of bad weather. Anti-submarine 
patrol, mine-sweeping, and convoy operations are proceeding as 
scheduled with no incidents to report. 

A Finnish report states that it is assumed that a Russian motor tor- 
pedo boat was destroyed in the mine field "Sauna I". On the after- 
noon of 3 Aug., Russian vessels were observed sweeping mines in that 
field. 

In accordance with the request of the Commander, Mine Sweepers, Baltic 
Sea (see War Diary 2 Aug.), Group North has ordered cancellation of 
compulsory escort between point Braun 60" and Memel a3 soon as the 
31st Mine Sweeper Flotilla has taken up its positions. Ships are 
again to be advised to proceed as close to the coast as possible. 



V. Submarine Warfare 

1. Enemy Situation ; 

According to an intelligence report from Sweden, a large 
convoy is being assembled in the U.S.A., primarily for the transport 
of troops to Iceland and the northern part of the British Isles. 
Weather permitting, the departure is scheduled to take place on 4 or 
5 Aug. 

At 2225, a plane reported flying over a submerging submarine south- 
west of Reyk janes. At 1305 a message was intercepted reporting a 
depth charge attack on a submarine some 160 miles northwest of Bilbao 
in the Bay of Biscay. It is assumed that the submarine was hit. At 
1755, a plane reported sighting a submarine some 200 miles south of 
La Rochelle. In the South Atlantic, the British steamer TURKESTAN re- 
ported having sighted a periscope 600 miles southwest of Freetown. 



-26- 



CONFIDENTIAL 
3 Aug. 1942 

The U.S. steamer HARRY LUCKENBACK reported sighting a periscope some 
400 miles southeast of Monrovia. It is not likely that the sub- 
marines were ours. 

Submarine attacks were reported by the Norwegian steamer T0PDALSFJ0RD 
(4,271 GRT) 130 miles east of Cape Race, and by the Norwegian steamer 
BRIMANGER (4,883 GRT) 180 miles southeast of Cape Race. Soon there- 
after, the report about the attack on the BRIMANGER was cancelled. 
In addition, numerous submarine sighting signals v/ere intercepted 
along the American East Coast. A radio report stated that so-called 
Bangors, i.e. vessels specially equipped for anti-submarine defense, 
are protecting the estuary of the St. Lawrence River. 

In the West Indies, 2 messages were intercepted reporting submarine 
attacks 360 miles east of Trinidad. 

2. Own Situation : 

In the course of her operation against the convoy in 
quadrant BC, submarine U "552" sank another 7,000 GRT steamer. The 
operation was then' broken off. Submarine U "607" sank an 8,000 GRT 
steamer which had stopped in quadrant BC 5746. It may be that this , 
steamer is identical with one of the steamers reported torpedoed by 
submarine U "552" on 2 Aug. 

No successes have been reported from the American East Coast. 

East of Trinidad, submarine U "108" sank a 10,000 GRT tanker. 

No sinkings have been reported by submarines operating in the South 
Atlantic and in the Mediterranean. , 

Further reports, particularly those about a directive of the Command- 
ing Admiral, Submarines concerning the sending of direction-finder 
signals by submarines and about captured American instructions for 
sailing from Colon through the Windward Passage in northerly direc- 
tion, are contained in the Supplement to Submarine Situation in War 
Diary, Part B, Vol. IV. 

Special Items t 

• 

The directive of the Second Admiral, Submarines concerning assignment 
of specialists of the II Branch (Laufbahn II) to shipyard work on 
submarines sets forth the details of this assignment. For copy of the 
corresponding telegram see 1/Skl 18970/42 Gkdos. in War Diary, Part 
B, Vol. V. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

During the day, fighter -bombers raided Middlesbrough, 
Scarborough, Leeds, Bradford, and other localities. Results were 
satisfactory. On the night of 3 Aug., 12 Ju 88 's were sent into 
action against ships off the southern coast of England. Ten enemy 
planes penetrated into the area of the Baltic Sea entrances in the 
western part of the Baltic Sea, presumably for the purpose of laying 
mines. No bombs were dropped and no planes were shot down. 



-27- 



CONFIDENTIAL 
3 Aug. 19 

2. Mediterranean Theater ; 

During the day, the following operations were executed: flank 
protection for the Italian mine operations off Marsa Llatruh, spot-check 
reconnaissance between Port Said and Haifa, and convoy protection by 
strong forces. A fighter assault on Malta, with several bombers parti-* 
cipating, lured out enemy fighters, three of which were shot down. 

3. Eastern Front : 

Nine planes were shot down on Army fronts. During attacks on 
ships in the Gulf of Finland, 2 motor mine sweepers were probably sunk, 
and a third damaged. 



VII. V/arfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

On 2 Aug., the expected convoy arrived in Gibraltar. It camei 
from the west, probably from England, and numbered 5 steamers. 

Two more submarines have been located in Valletta. 

Submarines were sighted off Sebenlco, Otranto, and Benghazi. 

Ship traffic in the Eastern Mediterranean was light. Eight steamers were 
observed in Beirut, and 1 submarine was sighted outside the harbor. 

2. Own Situation, Mediterranean : 

On the night of 2 Aug., enemy planes launched another heavy 
attack on Bardia. Twelve bombs were dropped on the city and harbor 
area. Since this port lacks anti-aircraft artillery, its further use 
can only be justified if it is provided with stronger anti-aircraft de- 
fenses. 

The Italians intend to have 2 destroyers lay the minefield off Marsa 
Matruhon 4 Aug. in the morning." 

3. Transport of Supplies to North Africa : 

In the afternoon, an enemy submarine sank the motor ship 
MONVISO (5,500 GHT ) 16 miles off Benghazi. The steamer ANKARA left 
Taranto for Tobruk. The motor ship BIXIO and the SESTRIERE departed 
from Brindisi bound for Benghazi, escorted by 3 destroyers and 2 tor- 
pedo boats. On the evening of 2 Aug., the steamer ALBACHAVIA arrived in 
Tobruk. 

Otherv/ise, ships are proceeding as scheduled. 2,251 tons were unloaded 
in Tobruk on 1 Aug., 860 tons on 2 Aug. 



-E8k- 



CONFI DEI-IT I AL 
3 Aug. 1942 

4. Area Naval Group South : 

Aegean Sea : 

No incidents have occurred at sea. The Staff Section of the 
Naval Construction Division refused on 27 Jul. to send the 500 German 
shipyard workers to the shipyard in Piraeus^, which had been promised 
some time ago. Group South reports that the proposal of the Naval 
High Command to resort to Russian workers from Nikolayev cannot be 
taken into consideration since the number of available workers is in- 
sufficient even to cover the needs of the Nikolayev shipyard. The 
Group has ordered Admiral Massmann to report on the matter to the 
Commander in Chief, Navy personally. 

, At the conference on the situation on 28 Jul., the 
Chief, Naval Construction Division, reported that in 
Salami s the problem of manpower shortage could be 
solved by extending armed forces rations to Greek 
workers. The Commander in Chief, Navy has passed a 
decision to this effect. 

Black Sea : 

Enemy Situation : 

Long-range air reconnaissance reports that on the afternoon 
of 2 Aug., a force of 1 cruiser, 1 destroyer, and 4 escort vessels, 
proceeding at high speed on a westerly course, was observed 20 miles 
west -northwest of Tuapse. According to continuous reports from 
shadowing planes,' the force was steering a northwesterly to northerly 
course, and at 1945 it was 50 miles south of Anapa. By evaluation of 
photographs the larger vessels have been tentatively identified as a 
heavy cruiser of the KIROV class and the flotilla leader KHARKOV. 
From 2245 on, our torpedo planes followed the force whose position at 
2551 was reported as 10 miles southwest of Cape Opuk on a 20° course. 
After midnight, Italian submarine chasers attacked the force some 20 
miles south of Feodosiya. According to further sighting reports, at 
0455 the 2 vessels were located with 7 escort vessels on a 110° course 
south-southwest of Anapa and at 0650 with 15 PT boats on a 150O course 
southwest of Novorossisk. Since, in addition to the force which was 
sighted, the Main Naval Direction Finding Station at Constanta located 
the cruiser KRASNY KRIM in the same area at the same time, it is not 
impossible that several groups participated in the thrust towards the 
Crimean coast. Group South has requested the Air Commander, South to 
check on this possibility. 

Own Situation : 

On 2 Aug. at 1800 the 5rd Motor Mine Sweeper Flotilla de- 
parted from Ivanbaba with 8 landing barges, sailing close to the 
coast in easterly direction. At 2500 the flotilla passed Cape Takil. 
As planned, the 1st PT Boat Flotilla and a group of Italian sub- 
chasers carried out protective measures south of the Kerch Strait, 
and the 1st PT Boat Flotilla laid mines on the way and then took up 
patrol positions. 

On 3 Aug. at 0615 the Admiral, Black Sea reported to Group South that 
6 landing barges broke through the Kerch Strait according to plan, 
while 1 motor mine sweeper together with 2 landing barges, for 
reasons unknown, turned back at Yenikale, heading for Kerch. One of 
the landing barges was hit, but is still afloat. The Chief of Staff, 



-29- 



CONFIDENTIAL 
3 Aug. * 1342 

Group South transmitted these facts to the Naval Staff by telephone 
at 1200. 

Of the three Italian submarine chasers protecting the break-through, 
subchaser LIAS "573" stopped in her patrol >position 5 miles south of 
Feodosiya as a result of engine failure. At 2400, she sighted an 
enemy force of 1 three-funnel cruiser and 1 flotilla leader and 
launched 2 torpedoes against the cruiser at a distance of barely 
100 n. * One of the torpedoes hit the target. At 0130, the Italian 
subchaser MAS "568", which had been notified in the meantime, at- 
tacked the cruiser with 2 torpedoes, hitting her with both. The 
Italians are certain that the burning ship sank. The 2 subchasers 
were then pursued by the flotilla leader but reached the base un- 
damaged. During the subsequent search on the morning of 3 Aug., sub- 
chaser LIAS "569" found wreckage and equipment at the place where the 
torpedo attack had occurred. 

It is not yet quite clear what vessel was attacked 
and probably sunk, since the force located on the 
morning of 3 Aug. was located later in its original 
strength. (See Enemy Situation. ) 

During the same night, around midnight, Ivanbaba was under continu- 
ous air attack and a simultaneous attack from the sea. The attack 
from the sea may be taken as another proof that other enemy naval 
forces were operating off the Crimean coast. 

Convoy operations are proceeding according to plan. 

During July 1942, 49,500 tons of supplies were transported by sea 
from Rumania to the Ukraine and 9,000 tons from the Ukraine to 
Rumania. Since 20 Apr., a total of 130,000 tons of supplies were 
brought into the Ukraine by sea. 

Special Items : 

(1) On 22 Jul., Group South suggested that a liaison officer to the 
Admiral, Libya be appointed, in order to insure liaison between the 
Group and the Admiral, Aegean Sea, on one hand, and the Admiral, 
Libya on the other, in all matters concerning the transport of 
supplies via the Aegean Sea. The German Naval Command, Italy has 
expressed its opposition to this measure. Group South restated its 
position in a communication to the Naval Staff Quartermaster Di- 
vision, Plans and Schedules Branch on 3 Aug. The Naval Staff 
Operations Division was notified accordingly via Telegram 1345. 

(2) Group South has submitted to the Naval Construction Division, 
Shipyard Branch a definite construction program, set up in coopera- 
tion with the Nikolayev shipyard, "so that we can at last progress 
beyond the planning stage". Speedy approval was requested. Naval 
Staff Operations Division is notified/ 

The plan calls for construction of 3 submarine chasers, 3 war trans- 
ports, and 2 tankers of the HERCULANULI type, for which materials are 
available. In addition, slipways are available for 3 more subchasers 
and 2 more war transports. There is also enough space for the 
assembly of 6 landing barges. This requires 1200 to 1400 more 
workers until April. (See Telegram 1935. ) 

(3) Results of an investigation by the Naval Staff Communications 
and Intelligence Division of the possibilities of transporting 



-30- 



CONFIDENTIAL 
3 Aug. 1942 

Italian subchasers from the Black Sea into the Caspian Sea overland 
north of the Caucasus (see V/ar Diary 1C Jul.) did not produce satis- 
factory results. For this reason, Group South has been instructed 
to put local stations in charge of further investigations in this- 
direction and to report their findings to the Naval Staff. The 
latter will try to obtain further facts from the Army General Staff, 
Intelligence Division, East. 



VIII. Situation East Asia 



Nothing to report. 



IX. Army Situation 

1. Russian Eront • 

Army Group A : 

Despite strong enemy resistance, our troops succeeded in 
carrying their attack beyond the Bolshaya Ternovka river. After a 
surprisingly rapid thrust, 3S troops established a bridgehead across 
the Kuban. Using their last fuel reserves, detachments of the 3rd 
Panzer Division seized- Voroshilovsk. 

Army Group B : 

4 

The enemy facing our southern wing is falling back in 
easterly direction. New fighting has broken out northwest of Kalach, 
Enemy attacks south of Serafimovich and west of Kazanskaya were re- 
pulsed. In the vicinity and north of Voronezh there were reconnais- 
sance and artillery activity. 

Central Army G r oup ; 

East of Rzhev, enemy artillery is attacking continuously, 
but so far without success. The fact that more enemy forces are 
moving into position means continued attacks at this point. North 
and northwest of Rzhev, heavy enemy attacks have until now likewise 
failed to reach their objective. Attacks continue near Byeloio 

Northern Army Group : 

Enemy attacks on the Volkhov front south of Yamno, north- 
east of Soltsy, and south of Leningrad were repulsed. 

2. Finnish Front ; 

Only local fighting is reported. Our assault troop opera- 
tions in the Kandalaksha sector encountered a watchful enemy. 

3. North Africa ; 

Reconnaissance and artillery activity as usual. For dis- 
tribution of enemy forces see daily situation report „ 



-31- 



CONFIDENTIAL 
4 Aug. 1942 

Items of Political Importance 

In connection with the question of, the Second Front in Europe , the 
rumors about Churchill's flight to Moscow, spread by various foreign 
sources, have not been confirmed. * 

Other runors report of a meeting between Chiang Kai-3hek and Stalin 
in Moscow, their trip to London, and even of their further trip to- 
gether with Churchill to Washington. 

Usually, such rumors arise when the enemy is at a 
loss to know what to do. 

Admiral Leahy and General Marshall are said to have declared them- 
selves in favor of the Second Front. In Washington, the question 
of who is going to be the Commander in Chief of the Allied Armed 
Forces is still a prime concern. Among other possibilities, a joint 
command by a group of British and American generals is mentioned. 

U.S.A. : 

The special military tribunal has sentenced to death the 8 German 
agents who had been arrested. 

According to an intelligence report from the U.S. Embassy in London, 
leading Washington circles are viewing the future very optimistically 
despite the heavy setbacks during the summer of 1942 which had been 
expected. Germany is said to be now in the same situation as in 
1917, and it will take at least another 18 months of concentrated air 
attacks, along with land and sea operations, to defeat her. Some of 
her allies, however, may be expected to become prematurely war- 
weary and inclined to make separate peace. 

It is expected that the U.S.A. will have at its disposal a well- 
equipped army of 7,800,000 men by 1 Mar. 1943, U.S. planes will be 
masters of the sky, and for every German tank there will be 6 
American ones. New fronts will tie up German forces in many places 
till the spring of 1943 will mark the beginning of the "real Ameri- 
can war". Total victory is not expected before 1944. The most in- 
teresting point in the plan to win total victory is the increase in 
ship construction: in 1942, 10,000,000 tons will be built and in 1943 
20,000,000 tons, including the concrete ships which will be con- 
structed in 45 days on a mass production basis. Plane production 
is said to have mounted from 2,400 in October 1941 to 4,600 in May 
1942 and will reach 10,000 in December. The number of tanks which 
were produced at a rate of 850 per month in 1941 has now risen to 
5,000 per month. 



Special Items : 

I. The Naval Staff directs Group North, with copy to the Fleet, to 
bring the LUETZ0W back to her home base, as planned. Repairs can 
presumably start in the Navy shipyard of Wilhelmshaven on 1 Sep. 
Repairs in Oslo are out of the question. If the LUETZ0.V cannot enter 
the shipyard immediately after her return, she will be released for 
training purposes, as suggested by the Fleet Command, 



-32- 



$ 



CONFIDENTIAL 
4 Aug. 1942 

II. Upon request of the Fleet Command, Group North has authorized 
the transfer of the KOELN, together with the STEIUBRINCK, to the 
Arctic area, beginning 6 Aug. When carrying out the transfer, the 
Fleet Command should see to it that a congestion of ships in Narvik 
be avoided. If necessary, the KOELN and 2 or 3 destroyers should be 
transferred to Harstad or to Tromsoe. Participation of the KOELN 

in operation "Eispalast" has been approved. 

III. On 1 Aug., the German Admiral at Tokyo reported that a Japanese 
naval officer revealed the following: 

1. The German Foreign Minister recently suggested to Oshima 
that Japan launch an offensive against the sea provinces. The 
Japanese Navy is opposed, especially in view of the fact that a 
rapid and complete success is not at all certain at the present 
moment, and American bombers can very well be transferred there in 
great numbers. Japan will attack as soon as the time is ripe. 

2. From 1944 on, the American war potential will make itself- 
felt to an ever .greater extent in Japan. By that time Japan will 
have to be prepared. For this reason, she must in the meantime 
avoid any operations involving great risks. Presumably the attack 
on Ceylon, which might cost Japan a major part of her naval planes, 
will not take place. 

3. An attack on Calcutta after the rain period is merely a 
question of ship tonnage. The operation has not yet been decided 
upon. The Army has been told that it would be desirable to make 
such an attack. 

4. If "Hitler first" is the enemy's goal, then the goal of 
the Axis after Russia's collapse should be "Great Britain first". 
Beginning around the middle of August, the Japanese Navy is going 
to conduct an all-out submarine and cruiser war in the western 
part of the Indian Ocean and around South Africa. The Navy feels 
sure that it can sink as many as 400,000 tons a month. Such results 
plus 500,000 tons a month expected to be sunk by the Germans, would 
bring about Great Britain's collapse next spring, especially if 
Suez falls and the British Navy is forced out of the Mediterranean 
and the Red Sea. 

• 

5. "Great Britain first" is important also because then the 
problems of China and India would be automatically solved and the 
Australian question would likewise be much easier to settle. 

6. Germany and Italy must be aware of the fact that, if such 
an eventuality arises, the Japanese Armed Forces can by no means be 
concerned with the conquest of the southern outlet of the Red Sea 
or the Persian Gulf. 

A copy of the report has been transmitted to the Naval Representative 
at the Armed Forces High Command, Operations Staff. 



-33- 



CONFIDENTIAL 
4 Aug. 1942 

Situation 4 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation ; 

Indian Ocean : 

According to an intelligence report, large numbers of 
South African troops have been placed aboard the ships of the 2 
convoys which are to leave Durban for Egypt on 4 Aug. 

An SOS was intercepted from a British steamer about 540 miles north- 
east of Mauritius. Another steamer reported from the area south- 
west of Albany (Australia) that she was being fired upon. An anti- 
submarine v/arning has been issued for that area. 

2. Own Situatio n: 

Directions concerning war decorations for prize crews are 
being transmitted to the Attache in Tokyo via Telegram 1020. 

A directive to furnish the TANNENFELS and the other blockade-runners 
with the same reference points for their return voyage to Europe 
as for their voyage to Japan is being transmitted to the Naval 
Attache in Tokyo via Telegram 2100. 

Information about the arrival of the D0GGERBANK in Batavia on 1 Aug., 
as well as about the position according to international lav; of the 
South Orkney Islands, South Shetland Islands, the Sandwich Islands, 
and Graham Land is sent to all vessels in foreign waters via Radio- 
gram 1700. 

Information about the enemy situation via Radiograms 0538 and 1947. 



II. Situation West Area 

1. Enemy Situation : 

Nothing noteworthy has been reported. 

2. Own Situation : 

Atlantic Coast : 

Mine -detonating vessels have swept 3 ground mines off 
Lorient. A mine-sweeping plane removed 1 ground mine off La Pallice. 
A French fishing boat struck upon a ground mine east of lie 
d'Oleron and sank. In spite of a British warning, French fishermen 
kept fishing in the entire unrestricted area in the Bay of Biscay. 

Channel Coast ; 

At 0205, Army batteries near Le Touquet fired at ships 
located at sea, presumably PT boats. 

A subsequent report about the engagement of the 8th Mine Sweeper 
Flotilla off Cherbourg on the night of 1 Aug. states that a direct 



-34- 



CONFIDENTIAL 



4 Aug. 1942 



hit by a 10.5 cm gun resulted in the probable sinking oT 1 motor 
gunboat, while 2 boats were set aflame and hits were observed on some 
other boats. 

During the evening hours, numerous balloons coming from the sea 
drifted over the Calais-Dunkirk area.. Incendiary canisters were 
attached to the balloons. 



During 



the nirht of 3 Auc 1 ;., a total of 1C PT borits were enf'ajTed in a 



torpedo attack against a convoy. Two steamers o 

sunk, 1 steamer of 2,000 CrRT was probably sunk. 

enemy destroyers was very lively and resulted in a number oT torpc 



f 1,500 G?T each were 
Defense action by 



misses which were due to the 
Our forces suffered no losse; 



skillful maneuver in;; 
For brief reports 



of the enemy vessels, 
from the 4th PT Boat 



Flotilla and the Commander of PT boats see Telegrams 1040, 2205, and 
1120. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation : 

Air reconnaissance found little convoy activity alonr; the 
southeast coast. 

Own Situation ; « 

Mine-detonating vessels swept 5 mines along the convoy route 
north of Egmond-aan-Zee, Vlieland, and Terschelling. 

In July, a total of 131 ground mines were swept in the area of the 
Commanding Admiral, Defenses, North. 33 air raids and 3 PT boat at- 
tacks were made against the naval forces of the Commanding Admiral, 
Defenses', North, which in turn, shot down 8 attacking planes and sank 
4 attacking PT boats. One mine-detonating vessel, 2 steamers, and 2 
small vessels were lost through enemy mines. 

The Naval Attache in Copenhagen reports that- after a short interrup- 
tion (see V.'ar Diary 31 Jul.) Danish fishing vessels have resumed 
fishing in the North Sea in full force. 



Convoys are proceeding according to plan. Unfavorable weather 
curbed mine-sweeping operations. 

2. Norway, Arctic Ocean ; 

Enemy Situation : 

On the afternoon of 3 Aug., and on ' the morning of 4 Aug., 
planes were active over the northern and western coasts of Norway. On 
2 Aug., a surfaced submarine was sighted 8 miles west of Obrestad. 

According to air reconnaissance reports, no ships are left in PIval 
Fjord and in the roadstead of Reykjavik. It has not been determined 
what has become of the ships reported assembled in Hval Fjord on 1 Aug. 
It is probable that convoy PQ 18 has gotten under way. 



-s?>-5- 



CONFIDENTIAL ' 
4 Aug. 1942 

Own Situation : 

No incidents have been reported from the area of the Command-* 
ing Admiral, Norway. 

On 3 Aug., the Air Commander, North ('..'est) informed the Commanding 
Admiral, Norway that the present fuel^situation requires a considerable 
reduction in hitherto regular reconnaissance operations, especially in 
the area between Norway and the coast of Scotland, the Orkney, Shetland, 
and Paeroe Islands, and in- the central area of the North Sea. Daily 
reconnaissance will not be carried out, except if there are special in- 
dications of the presence of enemy ships. To this the Commanding Ad- 
miral, Norway properly remarks that only air reconnaissance can pro- 
vide indications of enemy ship movements. He points to the growing 
danger of being taken unawares during the period of long nights, if air 
reconnaissance, especially the evening reconnaissance over the northern 
part of the North Sea, is no longer carried out. Group North points 
out that inadequate fuel allotments for the 5th Air Force also have a 
bad effect on other operations. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situatio'n ; 

Radio intelligence located 10 submarines. In the entrance to 
the Kronstadt Bay, intensified ship traffic was observed from the 
coast. 

2. Own Situation ; 

Convoy and patrol operations in the area of the Commanding 
Admiral, Defenses, Baltic Sea are proceeding according to plan. No in- 
cidents have been reported. 

Five ground mines were swept in the Mecklenburg Bay, one was swept in 
the Kiel Bay. 

Mine operations "Seehund 4" and "Seehund 5" in the area of the Commander, 

Mine Sweepers, Baltic Sea were executed during the night of 3 Aug. Anti- ^ 

submarine patrol, convoy, and general patrol operations are proceeding 

without incidents. 

The Naval Staff has notified Group North, with copies to the Commander, 
Mine Sweepers, Baltic Sea and to the Naval Liaison Staff, Finland, that 
the Marshal of Finland declared the transfer of German and Italian 
vessels from Lake Ladoga to the Gulf of Finland undesirable at the 
present moment. For the time being, therefore, no transfer should be 
ordered. When the time has come, a new request is to be submitted, pro- 
vided the situation on Lake Ladoga remains unchanged. 



-36- 



CONFIDENTIAL 
4 Aug. 1942 

V. Merchant Shipping 

Brief Report No. 23/42 of the Naval Intelligence Division, 
Foreign Merchant Marine Branch deals with the amount of the whale 
oil obtained by Britain in 1941-1942; Spanish security measures in 
the port of Huelva; new regulations for the issuance of navicerts; 
increase in Turkey's ship tonnage by construction of 40 large 
auxiliary sailing vessels; reorganization of U.S. sea transport; 
transfer of Venezuelan tankers to U.S. ownership, etc. 



VI. Submarine Warfare 

1. Enemy Situation : 

Lively reconnaissance activity of the 15th Air Group and 
planes from Iceland. In the morning and in the afternoon submarines 
were sighted in the area southwest of Reyk janes. Other submarines 
were reported sighted west of the Faeroe Islands. Decoding of a 
radio message shows belatedly that the auxiliary aircraft carrier 
ARCHER was ready for operations in Bermuda on 12 Jul. and was 
probably bound for the northeastern coast of the U.S. Radio intell- 
igence intercepted a number of submarine sighting reports from that 
vicinity, as well as from the West Indies. 

2. Own Situation : 

Six submarines are outward bound from home bases .and 
western France. 

No reports have been received from submarines in the Arctic Ocean. 

In the North Atlantic, submarine U "704" made contact with a south- 
westbound convoy in quadrant BC 2998 under very poor attack condi- 
tions. Since visibility did not improve, group "Steinbrick" was 
ordered to stop operations against this convoy. Two of the sub- 
marines departing from home bases are to proceed to the eastern 
coast of Newfoundland. 

En route from Germany to her operational area, and at the same time 
on the first voyage of her captain, submarine U "176" sank in 
quadrant BD 1387 the unescorted steamer RICHMOND CASTLE (7,798 GRT) 
which was proceeding at high speed in the direction of England. 

In the West Indies, submarine U "160" sank the tanker HAVSTEN 
(6,161 GRT) in quadrant EE 8915 and took aboard the captain and the 
radio operator. Submarine U "166" sank the. steamer EMPIRE ARNOLD 
(7,049 GRT) in quadrant- EF 77. The steamer belonged to a dispersed 
convoy and was carrying tanks and planes for Alexandria. The 
captain was taken aboard. 

The submarines operating in the South Atlantic and in the Mediterran- 
ean did not report any successes. 

For further reports, particularly concerning the refueling of sub- 
marines in the western Atlantic, see Supplement to Submarine Situa- 
tion in War Diary, Part 3, Vol. IV. 



-37- 



CONFIDENTIAL 
4 Aug. 1942 

Special Items: 

(1) In accordance with his report to the Chief, Naval Staff (see 
War Diary 3 Aug.), the Chief, Communications Division, Naval Staff 
has issued a directive to the Commanding Admiral, Submarines and 
Group West (copies' to the Second Admiral, Submarines and to the 
Communications Equipment Experimental Command), concerning the in- 
stallation of radar eqxiipment with emergency antennas on those sub- 
marines in the shipyards of western Prance and at home which become 
ready for operations during the month of August. Regular antennas 
will be installed on submarines which become ready in September. 

Jamming transmitters on board submarines are both unsuitable and 
dangerous. They prevent only range-finding but not direction-find- 
ing by planes. On the other hand, the use of planes of the 3rd Air 
Force equipped with jamming transmitters over the approach routes is 
considered very valuable. Group West is requested to take further 
action. It is planned to set up a jamming station on the lie de 
Groix, but it will be effective only as far as 40 miles from the 
shore. The Communications Equipment Experimental Command is prepar- 
ing a stronger jamming transmitter v/hose range, however, will still 
be limited. Even a large number of jamming transmitters cannot re- 
place fighter planes. ' 

(2) The report of the Naval Staff, Submarine Division with regard 
to increasing the number of submarines in the operations zones 
(see War Diary 28 Feb.) has brought about a statement by the Naval 
Construction Division which partly contradicts the opinion of the 
Submarine Division and also contains an answer to its query con- 
cerning the number of workers needed for each submarine repair. For 
copy see l/skl 18922/42 Gkdos. in War Diary, Part C, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

6 steamers totalling 20,000 GRT were reported damaged in 
an attack on a convoy on the evening of 3 Aug. off Start Point. The 
number and type of ships could not be established due to heavy haze. 
A large patrol vessel was damaged near Beachy Head during a fighter- 
bomber raid on the afternoon of 4 Aug. Brighton was raided, with 
well-placed hits in residential quarters. During the night of 4 Aug. 
26 German planes raided Swansea. 30 enemy planes flew over the Reich 
in the Dortmund-Krefeld area. 80 to 90 planes were reported over the 
occupied territories. 

2. Mediterranean Theater : 

Nothing particular has been reported. 

3. Eastern Front ; 

Air reconnaissance was active over the Caspian Sea. Other- 
wise there was nothing to report. 



-38- 



CONFIDENTIAL 
4 Aug. 1942 

VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

On 3 Aug., the CHARYBDIS and a cruiser of the CAIRO-class 
left dock in Gibraltar. On 4 Aug., the CAIRO-class cruiser was at 
sea during the day east of Gibraltar, evidently for tests. 

No other reports of interest have been received. 

2. Own Situation, Mediterranean : 

The Italian destroyers broke off their mine operations 
off Marsa Matruh because of bad weather. The destroyers have sailed 
to Leros. A new date for the operation has not yet been set. 

Since it must be presumed that there are no German magnetic mines 
left in Tobruk and Marsa Matruh, and in view of the fact that so far 
and probably also in the near future no mine-sweeping vessels are 
available, the German Naval Command, Italy requests that 2 mine- 
sweeping planes be made immediately available for Tobruk and 2 for 
Marsa Matruh. 

Seeing that the number of existing mine-sweeping 
planes is very limited, there is not much chance that 
the request will be complied v/ith. 

Unsuccessful enemy submarine attacks against the steamers PETSAMO 
and PLUTO occurred on 3 Aug. 

During a night raid on Tobruk on 3 Aug., a landing barge loaded with 
ammunition was sunk. The ANKARA, BIXIO, and SESTRIERE convoy was 
attacked 110 miles north-northwest of Derna by enemy planes which 
shadov/ed the convoy until midnight. So far, no damage has been re- 
ported. 

3. Transport of Supplies to North Africa : 

On 3 Aug., a transport submarine from Italy arrived, in 
Tobruk. 4 German and 7 Italian landing barges, together with the 
tanker SCILLIN, set out on their voyage from Suda to Tobruk. 

Otherwise, the transport of supplies is proceeding as scheduled. 

4. Area Naval Group South : 

Aegean Sea : 

Due to interrupted communications no situation report has 
been received. 

Black Sea : 

Enemy Situation : 

No noteworthy reports have been received. 

Own Situation : 

According to the final report from the Admiral, Black Sea 
4 landing barges reached the Kasantip Bay, after breaking through 



-39- 



CONFIDENTIAL 
4 Aug. 1942 

the Strait of Kerch. In addition to the 2 landing barges which 
turned about when approaching Yenikale, in order to put into Kerch, 
2 vessels' had already turned back at Cape Takil because of engine 
failure-. The hit reported on one of the landing barges entering 
Kerch was caused by a mine. The landing barges in Kerch which were 
ready to sail were supposed to get through to the Sea of Azov on the 
evening of 3 Aug. So far, no report about the execution of this 
plan has been received. Whether any further landing barges will be 
brought out of the Black Sea will depend on the decision of Army 
Group A concerning the execution of operation "Bluecher". 

On 2 Aug., a big fire broke out in Sevastopol. Enemy air raids 
staged simultaneously on Feodosiya, Ivanbaba, and Genichesk on 2 Aug, 
caused damage to buildings and property. Convoy operations are pro- 
ceeding according to plan. The steamer ARDEAL, which had been 
beached after being torpedoed off Odessa on 12 Jun., has been towed 
into port. 

Special Items : 

(1) Group South has submitted the first detailed plan and the 
reasons for its preliminary demands for operations in the Caspian 
Sea. For the Naval Staff's reply to Group South and its correspond- 
ing directive to the Quartermaster Division see 1/Skl I op 18776/42 
Gkdos. In War Diary, Part C, Vol. XlVa. 

(2) Group South has notified the stations under its command of its 
preliminary plans for the transport traffic in the Black Sea during 
the ice period. For copy see 1/Skl 19067/42 Gkdos. in War Diary, 
Part C, Vol. XlVa. 



IX. Situation East Asia 



Nothing to report. 



X. Army Situation ; 

1. Russian Front ; 

Army Group A ; 

Lively air activity is reported from the Kerch area. 

South of Kushchevka the enemy is falling back before the entire front 
in a southerly direction. In the pursuit our troops took Veselaya 
and Nyezamayevskaya. SS troops occupied Kropotkin. A Slovenian 
motorized division has taken over flank protection to the north and 
northwest. The bridgehead north of Armavir has been further re- 
inforced. Nikolayevsk has been taken. 

Army Group B ; 

In the area Orlovka-Remontnaya our troops penetrated as far 
as the railroad. Krugliakov and Aksai have been captured. Enemy 
pressure in the Kalach area has eased. A tank attack southeast of 



-40- 



f 



CONFIDENTIAL 



4 Aug. 1942 



Ketskaya was repulsed. Assault troops and artillery are active on 
both sides In the area north and northwest of Voronezh. 

Central Army Group : 

East of Rzhev, strong enemy infantry and tank forces have 
launched an attack on a wide front south of the Volga River, break- 
ing through our main line of resistance on a front about 15 km wide. 
It is to be expected that the enemy will bring up further heavy 
forces into the breach. Tank reinforcements from the area around 
Vyazma are being rushed to the 9th Army. After very heavy artillery 
preparation, superior Russian forces have launched another attack 
north of Rzhev, directing their main thrust against Belkovo. Here- 
our troops succeeded in holding the main line of resistance^ It is 
to be expected that here, too, the enemy will launch further heavy 
attacks. 

Northern Army Group : ' • 

Local fighting is reported. 

2. Finnish Front : 

No noteworthy fighting is reported,, 

3. North Africa ? 

Enemy reconnaissance activity as usual. The enemy has 
intensified' his air and ground reconnaissance. Our positions were 
attacked from the air on several occasions. ' 






-41- 



CONFIDENTIAL 
5 Aug. 

Items of Political ii,.jji'tance 

In connection with a Second Front In Europe , the United Press reports 
about a mass-meeting in Montreal calling for troop mobilization in 
Canada in order to bring about a Second Front. 

In a special article, the London Observer stresses the need for im- 
mediate action. It contends that the Russian ally is in mortal danger 
and has been v/aiting 13 months for the promised aid. It is "now or 
never". Once the Russian armies withdraw behind the Volga or as far as 
the Ural mountains, Moscow will have ceased to play a part in the war. 

In the secret session of the House of Commons on 4 Aug., Attlee de- 
livered a statement. The fact that Churchill himself did not speak 
corroborates the rumor that he is in Moscow, where, incidentally 
Bullitt, too, is said to have arrived as a special emissary of Roose- 
velt. If, in addition, it is kept in mind that Churchill is in the 
habit of throwing the weight of his personality into the scale when- 
ever a critical situation calls for extraordinary decisions, then his 
Moscow trip becomes more and more credible. 

Great Britain: 

__________ _____ , 

In the House of Lords, the Government explained that the radio address 
of the British Air Marshal to the German people was in line with the 
Government's policy proclaimed by Churchill some time ago. 

India : 

In view of the impending Congress Party resolution which both Britain 
and America are awaiting with understandable anxiety, the publication 
by the British Indian Government of the confiscated draft of the 
resolution has undoubtedly been an effective propaganda move to in- 
fluence public opinion agains.t Gandhi, especially in America, but even 
in India. In contrast to the later version which was toned down, the 
draft in question contains the wish for negotiations with Japan. In 
any case, the Indian Congress leaders Gandhi, Nehru, and Azad con- 
sidered it necessary to issue statements intended to mitigate the un- 
favorable impression created by the publication of the draft. Thus, 
while Congress was just about to pass the resolution, they were man- 
euvered into a defensive position. It remains to be seen how success- 
ful this step on the part of the Government will prove with Congress 
circles. In any case, the strong sympathies which Gandhi used to en- 
joy in America have been considerably weakened. Incidentally, the 
confiscated documents furnish also the apparent legal basis for pro- 
secution of Gandhi as a person guilty of high treason. 

The British Government appears in any event to be determined to counter- 
act by all means any movement that may break out in India, while con- 
tinuing to count heavily on lack of unity among the natives themselves. 
In view of this state of affairs, the German press has undoubtedly 
been justified in showing, as directed, extreme reserve in discussing 
the Indian problem, since it no longer appears certain whether Gandhi's 
draft for India's freedom will be accepted at all. 

U.S.A. : 

The Government is planning very energetic measures to step up war 
production. "Total mobilization of the nation" is to be achieved by 
the following measures: 



-42- 



» 



CONFIDENTIAL 
5 Aug, 1942 

1. Universal mobilization of a-11 workers, assigning the best 
skilled workers to war production', and if necessary, mobilization of 
all able-bodied women. 

2. Strict control over production and the use of raw materials. 

3. Strict control over private industry; if necessary, shutting 
down poorly managed or otherwise unprofitable plants. 

In view of the Congressional elections in fall 1942, Willkie, speak- 
ing to both Democrats and Republicans, has asked for a cessation of 
party disputes in all matters concerning war during the campaign. 



Special Items : 

I. The Commander in Chief, Navy has commended the captain and the 
crew of destroyer Z "37'* for their extensive and successful coopera- 
tion in completing the vessel which made it possible to commission 
her on schedule. The Commander in Chief, Navy told the Fleet, the 
Groups, and the commanding admirals that, in view of the prevailing 
manpower shortage, he expects the example set by destroyer Z "37" to 
be widely followed. 

II. The Naval Representative on the Armed Forces High Command, 
Operations Staff has transmitted a memorandum of the Army Representa- 
tive on the Armed Forces High Command, Operations Staff concerning 
Central Africa as an Anglo-American supply and operations base. Ap- 
parently, the memorandum is based in part on views of the Foreign 
Office which are well known to the Naval Staff. 

The Chief, Operations Staff, Armed Forces High Command, General Jodl, 
has pointed out that the evaluation of the situation shows the need 
for more submarines to operate against the route U.S. A. -Central 
Africa. The Naval Staff Operations Division will, in turn, submit a . 
brief evaluation of the situation to the Armed Forces High Command, 
Operations Staff. 

For copy of the report see l/Skl 19186/42 Gkdos. in War Diary, Part 
C, Vol. I. 

III. Concerning the French forces in Alexandria, the German Armistice 
Commission, France, acting upon a directive of the Armed Forces High 
Command, Operations Staff of 19 Jul. (see War Diary 19 Jul.), reports 
that it has transmitted to the French the following communication: 

"The German Armistice Commission, in agreement with the Italian 
Armistice Commission, makes known that the French naval forces, upon 
leaving port, should try to reach Bizerte as the nearest French 
harbor. Should the French forces in Alexandria, for some reason or 
other, . be unable to reach Bizerte, they will be assured of adequate 
shelter and supplies in the sea area of southern Greece or the Aegean 
Sea. If such a case arises, they will be notified in due time of the 
names of the harbors which they are to enter, as well as of the 
courses on which they are to approach those harbors." 

IV. The Foreign Navies Branch Naval Intelligence Division reports 
about docking facilities for British warships overseas in New Analysis 
"Foreign Navies", No. 37/42. 



-43- 



CONFIDENTIAL 



5 Aug. 1942 



V. A routine report on convoy and transport operations completed in 
the area of Group North between 1 Jul. and 31 Jul. 1942 (see l/Skl 
19148/42 Gkdos. in War Diary, Part B, Vol. V) shows a total of 
1,658 merchant ships (4,507,000 GRT ) convoyed and 133,895 soldiers, 
2,624 vehicles, and 504,059 tons of Armed Forces cargo transported. 
Only 14 of our vessels were total losses as a result of enemy action 
including mines. 



— ■ .« 

Situation 5 Aun;. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

Indian Ocean : 

On 1 Aug., Japanese reconnaissance planes sighted 1 battle- 
ship of the WARSPITE class, 2 aircraft carriers, and 9 small cruisers 
or destroyers 60 miles northeast of Ceylon. Two cruisers were ob- 
served elsewhere. 

The Consulate in Lourenco Marques reports that, since Durban has 
primarily become a navy base, Lourenco Marques is being used to a 
greater extent as a supply base for enemy ships, including those 
carrying materiel. 

2. Own Situation: 



waters. 



No reports have been received from our vessels in foreign 



Ship "10" is Informed of the latest positions of the ships she will 
use for cover names by Radiogram 2223. 

All vessels in foreign waters were informed about the British hospital 
ship OPHIR via Radiogram 1153. 

A report on the enemy situation was issued via Radiograms 0018, Q636, 
and 1845. 



II. Situation West Area 

1. Enemy Situation : 

There is no doubt that recently the enemy has been concen- 
trating his ground mine-laying operations on the area off the coast 
of western France. Only Brest continues to be spared. Few ground 
mines were laid in the Channel area. The Baie de la Seine remained 
free of mines. 

Despite favorable weather conditions, air reconnaissance failed to 
yield any results. 



-44- 



CONFIDENTIAL 



5 Aug. 1942 



2. Own Situation : 

Atlantic Coast : 

On the night of 4 Aug., energy planes were active in the 
area over Brest, Lorient, St. ITazaire, and La Pallice. No bombs were 
dropped. Mine operations are probable. Naval anti-aircraft guns 
shot down 1 plane in the vicinity of St. Nazaire. The rivers Loire 
and Gironde are temporarily closed to traffic because of mine danger. 

At 1330 the Japanese submarine I "30" entered Lorient after having 
been met the day before, as planned, by patrol forces of the Command- 
ing Admiral, Defenses, West and cf the Air Commander, Atlantic Coast. 
The mine-detonating vessel "136" succeeded in sweeping 4 mines in the 
St. Nazaire area. Due to heavy damage, the vessel is out of commis- 
sion. 

Channel Coast : 

The SCIIWABENLAND has transferred from Le Havre to Boulogne 
without incidents. 

The battery "Creche I" fired at vessels which had been located south- 
west of Boulogne, presumably PT boats. Effects were not observed. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

During the night of 4 Aug., enemy planes repeatedly at- 
tacked the convoy of the patrol vessel "2011" in quadrant AN 8316 
without success. During the same night, enemy planes were also 
active over the area Terschelling-Schiermonnikoog and farther to the 
east up to Heligoland and Scharhoern. The planes probably dropped 
aerial mines. 

The Swedish steamer DIANA from the Elbe -Ems convoy was damaged by a 
ground mine and towed away. Mine-detonating vessels swept 1 ground 
mine off Terschelling and another one south of Heligoland. Due to 
bad "..leather, operations by mine sweeper flotillas were either broken 
off or not started. 

Around midnight on 5 Aug., enemy planes unsuccessfully bombed our 
convoy northwest of Terschelling. 

2. Norway, Arctic Ocean : 

Enemy Situation : 

Radio intelligence reports that since 1 Aug. the battleship 
NELSON has been observed in the cHoee vicinity of Scapa. Air re- 
connaissance found lively patrol activity in the eastern part of the 
Arctic Ocean. 



-45- 



CONFIDENTIAL 
5 Aug. 1942 

Own Situation ; 

On orders of the Admiral, Arctic Ocean, the PT boat group 
at Narvik was dissolved on 4 Aug. The 3 boats have been reassigned 
to the 6th PT Boat Flotilla and are transferring on 5 Aug. to Harstad 
in order to join the flotilla for their return home. On 4 Aug., 
enemy planes were reported active over Stavanger and the Bergen area. 

No incidents occurred during convoy operations. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation : 

Submarine U "119'* has transferred to Frederikshavn in order 
to carry out mine operation "Duesseldorf" . 

The courier plane from Oslo to Copenhagen sent a most unlikely re- 
port of sighting and chasing, a submarine north of Skagen. Otherwise, 
no incidents were reported. 

Ih the eastern part of the Baltic, an enemy submarine sank the 
Finnish steamer P0HJA1ILAIITI (681 GRT) near Backofen (south of V/lndau). 

Unfavorable weather conditions badly hampered operations of the 
Commander, Mine Sweepers, Baltic Sea in the Gulf of Finland. Mine 
operation "Seehund I" had to be broken off. Convoy operations pro- 
ceeded as scheduled without any incidents. 



V. Submarine Warfare 

1. Enemy Situation : 

Radio intelligence believes that on 4 Aug. an engagement 
with the enemy took place in the Freetown area. One vessel sent 2 
tactical radio messages to Freetown, the first of which was repeated 
to 5 ships, presumably escort vessels. 

A submarine attack report was intercepted 400 miles northeast of New- 
foundland. Submarine sighting reports were sent from locations 40 
miles southeast of Cape Breton and 85 miles south of Halifax. Further 
submarine sighting reports were intercepted from the waters around the 
West Indies. \ 

2. Own Situation : 

Some 400 miles northeast of Newfoundland, submarine U "593" 
intercepted an eastbound convoy of about 23 steamers escorted by 
corvettes and destroyers. Further submarines have been sent into 
action. Contact was maintained throughout the day. So far, sub- 
marine U "593" has reported sinking one 5,000 GRT steamer from that 
convoy. 

-46- 



CONFIDENTIAL 



5 Aug. 1942 



Submarine U "254" reported sinking a 4,500 GRT steamer on a 130° 
course about 150 miles southeast of Reykjanes, 

In accordance with size regulations, submarine U "510" sank a 5,300 
GRT Uriaguayan steamer proceeding from Montevideo to New York with a 
cargo of corned beef. The captain was taken aboard. 

The Commanding Admiral, Submarines pointed out 
correctly that even if the sinking is In accordance 
with prize regulations, captains of neutral ships 
must not be taken aboard. , 

Of the submarines operating in the South Atlantic, U "213" is 
assumed to be lost. No successes have been reported either by these 
boats or by those in the Mediterranean. 



VI. Aerial Warfare • 

1. British Isles and Vicinity : 

During the day, armed reconnaissance was carried out and 
fighter-bombers raided a town on the coast. On the night of 4 Aug., 
Swansea, Portland, Bristol, and Weston were raided as alternate 
targets. Hits were well placed. On the night of 5 Aug., our planes 
raided targets in England marked for demolition. 

42 enemy planes flew over the Reich area, 103 over the western 
occupied areas. The attacks were not concentrated on any one local- 
ity. The planes penetrated as deep as Heligoland, Bingen, and 
Giessen. The Kloeckner Works in Troisdorf were badly damaged. 

2. Mediterranean Theater ; 

Small forces carried out nuisance raids on Malta. 

The forces of the Air Commander, Africa flew fighter and reconnais- 
sance missions and attacked motor vehicle concentrations. A raid on 
Suez, set for the night of 4 Aug., could be made by 3 planes only, 
since enemy planes attacked our airfields during the take-off. 200 
cubic meters of Navy fuel burned up as a result of enemy air raids 
on Tobruk. Heavy and acciirate anti-aircraft gunfire was observed at 
Suez. Numerous enemy fighters covered Cairo and the Suez Canal at 
10,000 m altitude. 

Increasing attacks by enemy fighter and bomber formations on the 
Africa Corps, as well as the complete inactivity of the strong 
fighter forces on Malta, lead to the conclusion that a new supply 
operation for Malta is either due or under way. 

For air reconnaissance results in the eastern Mediterranean see Enemy 
Situation, Mediterranean. 

3. Eastern Front : 

Strong support of the attacking armies and operations in the 
northern part of the front at the point of enemy penetration are re- 
ported. 



-47- 



CONFIDENTIAL 
5 Aug. 1942 

An eneny mine sweeper operating off Lavansaari was apparently 
damaged. 

For a report on our air reconnaissance activity over the Caspian Sea 
see Enemy Situation, Black Sea. 

♦ 

4. Special Item ; 
- ' .# 

According to a report of the Naval Representative on the 
Air Force Operations Staff, 23,424 men and 1,238 tons of supplies 
were transported to North Africa by air during the period from 17 to 
31 Jul. An impressive achievement! 



VII. Warfare in the Mediterranean and the Black Se a 

1. Enemy Situation, Mediterranean : 

The EAGLE, the CHARYBDIS, and 4 destroyers have left 
Gibraltar, Their course is not known. 

Submarines were located off Cape Dukato, southwest of Spalato, and 
north of Sidi Barrani. 

In the evening, radio intelligence located the hospital ship 
SOMMERSET SHIRE on a westerly course northeast of Port Said. Air 
reconnaissance reported that in the morning 3 destroyers and 2 
steamers were proceeding east of Port Said on a southerly course, 
while 3 other naval vessels were northeastbound. Aerial photographs 
show the following ships: 

In Alexandria : 3 tankers, 10 steamers; 

In Port Said : 1 warship dummy, 1 cruiser, 4 destroyers, 

4 submarines, 25 steamers, 1 tanker; 

In Suez : 1 cruiser, 4 destroyers,* 1 torpedo boat, 

33 steamers, 8 tankers, and other vessels 

2. Own Situation, Mediterranean : 

At 0650, motor mine sweeper R "12" was attacked by 6 enemy 
planes and suffered casualties. Fighter protection was missing. An 
Italian report states that 240 survivors were rescued from the motor 
ship M0NVTS0. 6 men are missing. 

For the brief report of motor mine sweeper R "11" about an enemy air 
raid on Bardla during the night of 1 Aug., see Telegram 1945. 

The German Naval Command, Italy reports that the Italian mine opera- 
tion off Marsa Matruh will be resumed at 0700 on 7 Aug. 

Mining of French territorial waters off Cape Bon 

In the meantime, the Fuehrer has ordered the German forces to direct 
their efforts toward an effective mining of the entire Strait of 
Sicily. To this end, it is desirable to reinforce the mine fields 
laid so far, and to lay mines off Cape Bon as soon as possible. Dis- 
cussions with the Foreign Office, aimed at clarifying the question of 



-48- 



CONFIDENTIAL 
5 Aug. 1942 

whether the French or the Italians are to lay a permanent barrage, 
are still in progress. It will be necessary to wait for the results 
of these discussions. Pending clarification, the Naval Staff con- 
siders it advisable that Italy make all necessary preparations so 
that, in case of danger, a mine field can be quickly laid without, 
first asking the French. 

The Naval Staff has informed the German Naval Command, Italy accord- 
ingly, making reference to the Command's last report in this matter 
(see War Diary 22 Jul.). At the same time, the Naval Staff directed 
the Command to answer the Italian objection by stating that this 
measure does not require immobilizing the Italian vessels "for an 
indefinite period", since it is meant only as a temporary expedient 
until either the French or the Italians take over the mine-laying 
operations. 

According to a communication of 4 Aug. from the Naval Representative 
on the Armed Forces High Command Operations Staff, the Armed Forces 
High Command intends to order the German General at Italian Head- 
quarters to present to- the Italian High Command, together with the 
German Naval Command, Italy, the request for reinforcing the mine 
fields in the entire Strait of Sicily, and to emphasize its particular 
importance to the German Armed Forces. This does not affect the 
question of mining the French territorial waters. The Naval Staff has 
given its consent as requested. 

3. Transport of Supplies to North Africa ; 

Transport, of supplies from Italy to North Africa, from 
Greece to North Africa, and along the North African coast is pro- 
ceeding according to plan. 

4. Area Naval Group South : 

Aegean Sea : 

Destroyer ZG "3" ha 3 brought the damaged submarine U "9 7" 
into the port of Salamis. : 

Black Sea : 

Enemy Situation : 

Air reconnaissance reported that a convoy composed of 2 
tankers, 1 steamer, and 7 escort vessels has departed from Tuapse in 
southeasterly direction. On 4 Aug., ships were observed gathering in 
the Tamanskaya Bay, presumably for the purpose of breaking through 
southward during the night . 

Air reconnaissance located 5 submarines, 7 patrol vessels, as well as 
numerous lighters, freight barges, paddle steamers, and motor tugs 
in Astrakhan . One submarine, 2 tankers, 2 large lighters, and 6 
small steamers were riding at anchor in Makhach Kala , 

Own Situation ; 

On 4 Aug., an Italian subchaser unsuccessfully attacked a 
submarine south of Feodosiya, while a landing barge failed in an 
attack against another submarine south of Odessa. Likewise on 4 Aug. 
the tanker MONTAN 24 sank as a result of a mine hit west of Ochakov. 
On the night of 3 Aug.,, motor mine sweeper R "163" and 1 landing . 



-49- 



CONFIDENTIAL 
5 Avis. 1942 

barge broke through from Kerch in a northerly direction as planned. 
On the same night, 10 enemy planes, attacking in v/aves, bombed 
Kazantip bay and village. The attack was evidently aimed at the 
landing' barges and motor mine sweepers which had broken through the 
Strait of Kerch but were already on their way to Genichesk at the 
time of the air raid. 

On the same night, a heavy air raid was carried out by the enemy on 
Marirupdl which was simultaneously under gunfire from 3 or 4 vessels. 
Large fires were caused. On 5 Aug., 3 landing barges transferred 
from Genichesk to Mariupol. 

Army Group A reports that the main effort is again concentrated on 
operation "Bluecher". 3 landing barges are considered sufficient 
for the transport of supplies from Mariupol to the Don. Preparation; 
for operation "Bluecher" will be completed by the Army and the Navy 
by 10 Aug. Convoy operations in the Black Sea are proceeding ac- 
cording to plan. 

The Kavy Liaison Officer at the Army General Staff reports that the 
Quartermaster, Rumania has been directed to prepare the vessels for 
transport operations between the Crimea and ITovorossisk so that the 
landing barges can be released for other missions. For details see 
Telegram 1345. 

5. Situation France : 

According to a report of the German Armistice Commission, 
France, the French have called attention to the fact that torpedo 
boat FOUG'JEUX was able to free the captured steamer MITIDJA only be- 
cause the crew sent a radio message instead of scuttling the steamer 
with undue haste. In view of this favorable experience, the French 
are requesting for their steamers permission to issue submarine 
sighting reports. For further action on this request see War Diary, 
Part C, Vol. VIII. 



ViII. Situation East Asia 
Ilothing to report. 



IX. Army Situation 

1 . Russian Front : 

Army Group A ; 

In the Kuban area, our infantry divisions advancing in pur- 
suit of the enemy have reached the line Kanyevskaya-Tikhoryetsk. The 
enemy is holding the southern shore of the Kuban River near Kropotkin, 
The bridgehead north of Armavir was widened and reinforced with heavy 
weapons. The bridge over the Kuban has been completed. Our troops 
occupied the railway junction ITyevinnomysk south of Voroshilovsk. The 
railway bridge was captured undamaged. It seems that the destruction 
caused by the fleeing enemy is not as thorough as before. 



-50- 



5 Aug. 1042 

Amy Group D ; 

South of Rercontnaya, our divisions have launched an attach 
against unweakoned enemy forces. The notorized and Panzer divisions 
which had thrust northeast of Ilotelnikov took Plotovitoye against 
strong enemy resistance. Northwest of Kalach, our troops repulsed 
heavy attacks. The enemy, supported by tanks, is attacking southeast 
of hletskaya. Southeast of Kazanskaya, detachments of enemy forces 
have succeeded in crossing the Don in westerly direction. Counter- 
attacks are under way. Enemy attacks west of Livny have been repulsed, 

Central Army Gr oup : 



The enemy succeeded in widening the point of penetration 
southeast of Rzl-icv and in advancing as far as the ro. r -d from Dukontov to 
Cubtsov. Enemy attacks east and north of Rzhev were repulsed. 

Ilortho rn Army Group : 

Southeast of Stnraya Hussa our troop. are attacking in order 
to annihilate enemy forces which had infiltrated the area east of 
Gramuchcvo. South of Leningrad, our artillery is in action against 
enemy troop movements. 

2 . F innish Front : 

On the Loukhi front, our forces repulsed enemy counterattacks 
against our recently won- hill position. 

3 • North Africa : 

4 

On the night of 4 Aug., enemy patrol troops were very active 
in the coastal sector. During the day, artillery and patrol activity 
was normal along the entire front. According to photographic recon- 
naissance, the oasis of Parafra Is not occupied. 



-51« 



COIIFIDEITTIAL 
6 Aug. IP 4 2 

Iter.s of Political Importance 

The British Government has neither confirmed nor denied Churchill's 
trip to Moscow. General Bradley, the former commander of the U.S. 
Army Air Forces, was sent to Moscow Immediately after Litvinov's 
visit in Washington to give Stalin a personal letter from Roosevelt. 
He arrived in I.'oscow on 4 Aug. The visit is interpreted by our 
sources as having to do with increased American aid to Russia. 

In connection with the question of establishing a Second Front , Anglo- 
American discussions are being carried on. It is said that the 
secretiveness of the Red Army commanders makes it extremely diffi- 
cult to work out such a plan and practically prohibits risking the 
operation. The Economist , mouthpiece of British financial circles, 
issued an explicit warning against the venture of a Second Front, 
saying that it would be sheer madness to cross the Channel before the 
arrival of huge masses of American troops in England and outright 
suicide to try to run against the enemy's modern coastal defenses. 
The President of the United Automobile. Workers of the CIO spoke in a 
radio broadcast in favor of the Second Front. 

The representative of the French Government in occupied France, De 
Brinon, declared that the only Second Front which Churchill, Roose- 
volt, and .Stalin might be able to establish consists of acts of in- 
surrection in France instigated by them. 

Great Britain ; 

In the House of Commons, Eden made known the exchange of notes be- 
tween the Czechoslovak Government in Exile and the British Govern- 
ment, confirming Britain's withdrawal from the stipulations of the 
Munich Pact with regard to Germany's frontiers. 

Charles Kennedy Purvis has been appointed deputy to the First Lord of 
the Admiralty so that the First Lord of the Admiralty may be relieved 
for operational assignments. 

India : 

Under the pressure of the Government's publication of the first draft 
described on 5 Aug., Gandhi had the committee of the Congress Party 
accept a new draft on 5 Aug. This draft reiterates the demand for 
British withdrawal and Indian independence; it adds, however, that, 
after the independence has been granted, the provisional government 
of India will unconditionally join the Allies and will put up armed 
resistance against the Japanese or any other aggressor. The Congress 
will meet on 7 Aug. London has restated the Government's position 
to the effect that a campaign of disobedience will by no means be 
tolerated, that an immediate transfer of power to India is out of the 
question, and that the Government adheres to the proposals trans- 
mitted by Cripps . 

Turkey ; 

On 5 Aug., the Prime Minister introduced his new Cabinet to the Na- 
tional Assembly. He declared that it is the goal of the Government 
to keep the country out of war, while at the same time putting it in 
a position to defend itself against any attack on its independence or 
its territory. To prove the "consistancy" of Turkey's foreign policy, 
with its definitely positive neutrality, Soracoglu pointed to the 
treaty with Great Britain and the Turco-German agreement. All in all, 



-52- 



CONFIDENTIAL 
6 Aug. 1942 

one cannot escape the impression that Turkey is still far from break- 
ing her pact with Britain. 

U.S.A. : 

Baldwin, a military correspondent of the New York Times , states in an 
article published in the Argentine magazine Nacion that a large-scale 
air offensive against Germany depends on the outcome of the Battle of 
the Atlantic, since gasoline and bombs, as well as plane replacements 
must be brought to England by sea. In any case, nightly large-scale 
attacks are entirely out of the question this year. 

Japan : 

In the opinion of Allied military circles, the Japanese operations 
in the Kokoda area (on New Guinea) constitute a serious threat to 
Port Moresby. Military circles in the U.S.A. expect the Japanese to 
launch an attack on Alaska from the Aleutians. On 30 Jul., Japanese 
Fleet forces occupied strategic points on the Aru, Kei, and Tenimber 
Islands in the Arafura-Sea north of Australia. 



Conference, on, the Situation with t he Chief, Naval Staff 

In a Very Restricted Circle ; 

I. Upon his return from the inspection tour in France, the Chief, 
Naval Staff emphasizes the extremely favorable general impression 
which he has obtained of the Navy's defense preparations on the' 
coasts of France. Most urgently needed is a reinforcement of patrol 
forces for the protection of the approach and exit routes of submarines 
in the Bay of Biscay. The Commander in Chief, Navy is submitting the 
following personal report to the Fuehrer: 

"In t he period from 3 to 6 Aug. I have personally examined the coastal 
defense preparations against enemy action in the northern and western 
areas of France (Le Havre, Baie de la Seine, Brest, Lorient), as far 
as they concern the Navy and its cooperation with the Army and the 
Air Force. I hereby report to you, my Fuehrer, that I have gained a 
very favorable impression of the state of the defenses, especially 
the submarine bases. Even at this moment, a landing would mean an 
almost unbearable risk to the enemy. 

"Since, at this stage, the enemy can hardly achieve his primary ob- 
jective, i.e. elimination of the submarine bases, he is trying to 
deal a heavy blow to our submarine operations by means of continuous 
air attacks against the submarines in the coastal waters and in the 
Bay of Biscay on their departure and approach routes. In this he is 
supported by excellent methods of radar direction-finding. So far, 
several submarines have been lost in the Bay of Biscay and numerous 
others suffered heavy damage which put them out of commission for 
several months. As the situation is constantly becoming more diffi- 
cult, I am prompted to point out to you most emphatically, my 
Fuehrer, the serious harm that may be caused to our submarine opera- 
tions if the present menace of air attacks in the Bay of Biscay is 
allowed to continue. Today, the departure and approach of the sub- 
marines via the Bay of Biscay represents the most difficult part of 
submarine warfare. 



-53- 



CONFIDENTIAL 
6 Aug. 1942 

"In view of the decisive importance of submarine warfare, measures to 
remedy the situation must be speeded up. The air forces on the At- 
lantic coast are at present entirely inadequate for operations over 
the Bay of Biscay. Only a few Ju 88' s are ready to be sent into 
action. I, therefore, consider it urgently necessary to increase the 
air forces of the west area (Air Commander, Atlantic Coast) in order 
to obtain adequate protection in the Bay of Biscay, and request you 
to order an increase in the number of air forces operating in the Bay 
of Biscay to at least one Ju 88 bomber group in full readiness, as 
well as their replacement by the first He 177 planes coming off the 
assembly line. Only in such a measure do I see a possibility of im- 
proving a situation which has become unbearable, and of avoiding 
further heavy losses." 

Details of the inspection tour will be reported to the usual partici- 
pants at the situation conference on 7 Aug. 

II. Report on the situation by the Chief, Operations Branch, Naval 
Staff Operations Division: 

1. The Armed Forces High Command has received reports on large- 
scale Russian evacuation transports from the Tuapse area to the south 
by sea. The Fuehrer wishes the Navy and the Air Force to employ all 
possible means of attack. Group South and the Admiral, Black Sea are 
being instructed to this effect. 

2. The convoy PQ 18 has been intercepted by submarine U "405" 
on a northerly course in quadrant AA 8949. The Admiral, Arctic Ocean 
has sent into action group "Nebelkoenig", in order to have as many 
submarines as possible in the area through which the convoy is mov- 
ing. Group North has ordered the cruiser force to be ready on 3 
hours notice and the KOELN to refuel immediately at Narvik. 

Group North assumes that simultaneously with convoy PQ 18, a QP con- 
voy will get under way. Despite the annihilation of convoy PQ 17, 
more than 20 steamers have recently been located in the harbors of 
the Arctic Ocean. It is therefore quite possible that a convoy will 
be going back. The Group intends to send the naval forces under the 
Commanding Admiral, Cruisers against the QP convoy if air reconnais- 
sance furnishes sufficient evidence that the operation promises 
success. It is planned to intercept and attack the convoy in the 
eastern part of the Arctic Ocean but by no means to carry the attack 
to an area where the 2 convoys may meet. Naval forces will attack 
convoy PQ 18 only under conditions similar to those stipulated for 
attack on convoy PQ 17. 

The Chief, Naval Staff approves the plan in principle. The plan must 
be reported to the Fuehrer. 

3. The Russian convoy, whose departure from Petropavlovsk was 
reported by the Japanese Navy on 26 Jul., presumably reached the 
Bering Strait on 1 Aug., according to dead reckoning by the Naval 
Staff Operations Division. If nothing happens, the voyage from the 
Bering Strait will take 15 to 18 days, and the convoy might arrive in 
the Kara Sea around 15 Aug. The date of 15 Aug. is also approximately 
the latest on which an eastbound ship can depart from the west. The 
Naval Staff has communicated this information to Group North and has 
requested the latter to report its plans at an early date and to sub- 
mit an operations order for the operation of the cruiser SCHEER in 
the Kara Sea. 

The Chief, Naval Staff agrees. 
-54- 



+ 



CO NFIDENTIAL 
6 Aug. 1942 

4. The Naval Representative at the Armed Forces High Command 
Operations Staff reports from his official trip in the Black Sea area 
that since reinforcements have been received the "Bluecher" offensive 
is being reconsidered, involving 2 Rumanian divisions; on this de- 
pends where the naval landing craft should be concentrated. 3 ves- 
sels would suffice for the transport assignment on the Don. The de- 
cision is up to Army Group A. 

The Chief of Staff, Naval Staff has ordered Commander Junge to come 
to Berlin next week to report in person about his observations con- 
cerning shipyard conditions in Nikolayev and other problems. 

5. The Chief of Staff, Naval Staff reports about a letter from 
the Duce to the Fuehrer, which points out the decisive importance of 
the transport problem in the Mediterranean and reiterates the request 
for fuel oil needed by Italian naval forces to maintain patrol and 
escort operations for the protection of supply transports. The Chief 
of Staff, Armed Forces High Command was in Berlin and, in compliance 
with the Fuehrer's basic policy, recommended a loan of 10,000 tons of 
fuel oil to be granted to the Italians from Navy stocks, although he, 
too, left no doubt about his opinion on the astonishingly high fuel 
oil demands of the Italian Navy. Considering all the factors in- 
volved, the Chief of Staff, Naval Staff has approved the measure. 

The Chief, Naval Staff agrees. 



Special Items : 

i 

I. The Air Force Operations Staff has granted the fighters re- 
quested for the return of the LUETZOY/ and has issued a corresponding 
directive to the 5th Air Force and the Air Force Group Command, 
Central Area, v/ith copy to the Naval Staff Operations Division. 

The Naval Staff is notifying Group North to this effect. 

II. The Naval Intelligence Division, Foreign Navies Branch reports 
about the naval stations in Great Britain and Northern Ireland in 
News Analysis No. 38. 

III. Radio Intelligence Report No. 31/42 of the Naval Staff Communi- 
cations Division, Communications Intelligence Branch contains a com- 
pilation of enemy reports from the radio decoding and radio intercept 
services between 27 Jul. and 2 Aug. 1942. 



Si tuation 6 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic ; 

According to an intelligence report, the number of men em- 
barked in England during the first half of 1942 for transport to 
India and Ceylon was slightly over 100,000. By October, 45,000 more 
men for India are to follow. It is presumed that a large convoy of 

-55- 



CONFIDENTIAL 
6 Aug. 1942 

these troops, who are provided v/ith tropical equipment, will depart 
from ports on the western coast of England in the early days of 
August . 

Indian Ocean : 

Due to the appearance of Japanese submarines in the Mozan- 
blque channel, instructions for vessels sailing alone from ports in 
India to the Cape of Good Hope now direct those vessels to keep far 
to the east of Madagascar. But this will not bring them into the 
operations area of our auxiliary cruisers. 

2. Own Situation ; 

The third prize of ship "10", the steamer MADRONO, entered 
Yokohama on 5 Aug. Unfortunately, the ship had only ballast aboard. 

Report on enemy situation was transmitted via Radiograms 1020 and 
1759. 



II. Situation West Area 

1. Enemy Situation : 

According to an intelligence report from Paris, Anglophile 
circles in Prance are suddenly showing great interest in Le Treport 
and its surrounding area. 

Air reconnaissance observed normal ship movements in the Channel. 

2. Own Situation : 

No incidents have been reported. 

The following operations are set for the night of 6 Aug. : mine opera- 
tion by the 5th PT Boat Flotilla, torpedo operation by the 2nd and 
4th PT Boat Flotillas, transfer of the 3rd Torpedo Boat Flotilla with 
3 boats to St. I'alo, and transfer of the catapult ship SCHV/ABENLAND 
from Boulogne to Dunkirk, 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Around noon, enemy planes unsuccessfully attacked vesnels 
of the Rhine Flotilla off Walcheren. - In the afternoon, enemy 
reconnaissance planes were active over the German Bight and the 
northwestern coast of Germany. Four bombs were dropped on and in the 
vicinity of the Wangeroog airfield. Our fighter planes made no con- 
tact with the enemy. 

Mine operation "Erasmus" (cutter float barrage SW 101) is to be 
carried out during the night of 6 Aug. 



-56- 



CONFIDENTIAL 
6 Aug. 1942 

2. Norway, Arctic Ocean ; 

Enemy Situation : 

Lively reconnaissance activity is reported over the northern 
part of the North Sea. On 5 Aug., radio intelligence located 4 
British vessels in the southern outlet of the Gorlo Strait and 1 
vessel in the Murmansk area. A newly-laid Russian aerial mine was 
swept in the eastern outlet of the Brei Sound. 

At 0018, a submarine reported sighting a convoy on a northerly 
course in quadrant AA 8949. At 0352, she lost sight of the convoy 
because of fog. Thus, convoy PQ, 10 has presumably been intercepted . 
Since the ice boundary has receded farther than 77 U N, it is to be 
expected that the. convoy will haul off far to the north, passing 
close, to the South Cape and along the northern part of Novaya Zemlya. 
This greatly reduces the area where the convoy can be attacked from 
the air. 

Own Situation : 

The KOELN and the STEINBRINCK are transferring from Trond- 

heim to Bogen Bay. On 5 Aug., enemy planes were active over the 

western coast. The 6th PT Boat Flotilla is transferring with 5 . 
boats from Kirkenes to Tromsoe. 

The Admiral, Arctic Ocean, has sent the submarine group "Nebelkoenig" 
against convoy PQ 18. Submarines U "255" and U "403" have been 
ordered to proceed at top speed to quadrants AB 58 and AA 69, re- 
spectively. For the operations plan of Group North see Conference on 
the Situation with the Chief, Naval Staff. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation : 

No incidents were reported from the area of the Commanding 
Admiral, Defenses, Baltic Sea. 

Transport and convoy operations to and from Norway and Finland are 
proceeding according to plan. 

In the Gulf of Danzig, submarine U "612" sank after colliding with 
submarine U "444". One man was killed. 

In view of the fact that Russian naval forces are not expected to 
break out of the Baltic Sea at the present stage, which means that it 
will not be necessary to mine the Sound, the Naval Staff agrees to 
Group North's suggestion that operations "Sevilla" and "Skarskhorn" 
be dispensed with (see War Diary 3 Aug.). The mines carried by the 
OTTER may be used to replenish the reserves of the Commander, Mine 
Sweepers, Baltic Sea. 



-57- 



CONFIDENTIAL 
6 Aug. 1942 

On the night of 5 Aug., mine sweepers M "18" and IS "30" had several 
unsuccessful light engagements with what is presumed to have been 6 
Russian motor mine sweepers and 2 FUGAS-class mine sweepers in the 
Gulf of Pinland between Vigrund and Mansi Bank. On the same spot, a 
submerging enemy submarine was sighted at 0345. 

Mine operations "Lachs V" and "Lachs VII" have been executed as 
planned,* 

In view of the persistent menace of submarine attacks, Group North has 
assigned ships "7" and "47" (decoy ships) from the area of the Com- 
manding Admiral, Defenses, Baltic Sea to the Commander, Mine Sweepers, 
Baltic Sea. For operation "Duesseldorf", they will be replaced by 
vessels of the 17th Patrol Boat Flotilla. 

In order to reinforce the escort service in view of the persistent 
danger of submarine attacks, Group North requests a temporary alloca- 
tion of further gun carriers to the 27th Landing Flotilla, since it 
is no longer possible to increase the force of the Commander, Mine 
Sweepers, Baltic Sea by withdrawing vessels from other command areas. 

The request is* under consideration. 



e 



V. Submarine Warfare 

1. ' Enemy Situation : 

Planes reported sighting submarines 175 miles west of the 
Gironde estuary and 200 miles southwest of Brest. A plane reported 
an unsuccessful depth charge attack on another submarine 250 miles 
north of the Shetland Islands. 

2. Own Situation ; 

For the Naval Staff's communication to the Commanding Ad- 
miral, Submarines about the intelligence report on the departure of a 
large American troop transport (War Diary 3 Aug.) see Telegram 0046. 

After having disappeared in the fog at 0351, convoy PQ 18 was not 
located a second time during the day. Group "Nebelkoenig" has been 
ordered to form a patrol line extending from quadrants AA 6819 to 
AA 9381 at 0000 on 7 Aug. The convoy should reach this line shortly 
after midnight if it proceeds at 8 miles per hour. 

Altogether, 13 boats are operating against the convoy in quadrant A J. 
8 boat3 made temporary contact with the convoy in the course of the day* 

No successes have been reported from any of the operations areas. 

Further reports are contained in the Supplement to the Submarine Sit- 
uation in War Diary, Part B, Vol. IV. 

3. Special Items ; 

The permission to attack unescorted vessels sailing alone 
on route "Anton", which had been granted to the submarines in the past, 
has now to be cancelled beginning 10 Aug. for the area north of 20" N 
and beginning 16 Aug. for the area south of 20°N, due to the 



-58- 



* 



CONFIDENTIAL 
6 Aug. 1942 

resumption of blockade-runner traffic. 

The Commanding Admiral, Submarines is being directed to this effect 
via telegram. See 1/Skl I u 1525/42 Gkdos. Chefs. In War Diary- 
Part C, Vol. IV. 



VI. Aerial Warfare 

1.. British Isles a nd Vi cini ty; 

Our planes attacked In daylight operations Norwich, Boston, 
and Margate, as well as Trurc and Bodmin (Cornwall). On the night of 
6 Aug., a few planes raided Cambridge and Edinburgh. Bombs were 
dropped on 2 steamers in a convoy off Start Point but fighter defense 
prevented observation of effects. 

During the day, 2 enemy planes penetrated into the Reich area with- 
out dropping bombs. During the night, 74 flights were observed over 
the industrial area of western Germany. They did not concentrate on 
any one place. Our night-fighters shot down 5 planes. 

2. Mediterranean Theater : 

Reconnaissance over the area extending up to 3 W In search 
of the EAGLE group failed to yield any results. 

Planes protecting supply transports and convoys took off from Crete. 
In Africa, planes were sent into action against airfields arid tank 
concentrations . 

Reconnaissance flights were carried out over the eastern Mediterranean 
and the Suez Canal. For results see Enemy Situation, Mediterranean. 

3. Eastern Front ? 

Patrol vessels and 1 mine-sweeper were successfully attacked 
in the eastern part of the Gulf of Finland. In the Arctic Ocean area, 
our planes raided 1 guerilla camp near Songelsk and 1 oentonment near 
Eina Bay with observed effect. Reconnaissance over the Motovski Bay 
up to the Rybachi Peninsula failed to yield any results. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

On the night of 5 Aug., the LIVERPOOL departed with 3 de- 
stroyers from Gibraltar, presumably in westerly direction. One 
cruiser of the CAIRO-class was at sea together with several light 
vessels east of Gibraltar throughout the day for maneuvers. Efforts 
to locate the EAGLE group in the western Mediterranean failed. Nor 
have any indications been received about transfer of planes to Malta, 

Submarines were sighted south of Naples and southwest of Gavdho.s. 



-59- 



CONFIDENTIAL 
C Aug. 1942 

No ship rnovencnts were observed in the eastern Mediterranean. Photo- 
graphic reconnaissance in that area showed no noteworthy changes in the 
number or type of vessels in the harbors. On 5 Aug., air reconnaissance 
located 1? steamers, 1 tanker, 1 hosnital ship, find 1 southbound sub- 
marine in the Suez Canal. 



o 



Own Situation, Mediterranean : 



During the nighty of 5 Aug., enemy planes raided Bardia. 8 
Italian submarines were at sea in the western lied it err an can. 

3. Transport of Supplies to North Afr.ica : 

On 5 Aug., the motor ships SiXTPJSRU and BIXIO arrived in 
Benghazi, the AITCARA in Tobruk. Otherwise, the transport situation is 
in accordance with plans. In Tobruk, 1,113 tons were unloaded on 4 
Aug. and 1,130 tons on. 5 Aug. In Marsa Matruh, 212 tons were un- 
loaded on 5 Aug. 

4. A rea Naval Group South ; 

Aegean Sea ; 

On 4 Aug., an enemy submarine sank 1 auxiliary sailing vessel 
off the eastern coast of the Peloponnesos . The Italian Navy reports 
sighting a submarine south of the Doro Channel on 6 Aug. Transport 
operations are proceeding as planned. The steamer UACKTFSLS has de- 
parted under escort with several Italian steamers from Suda to Piraeus, 

Black Sea : 

Enemy Situation ; 

An intelligence report stated that on 2 Aug. Admiral Kuznetsov 
inspected the Black Sea Flotilla in Novorossisk consisting of 1 battle- 
ship, 1 aircraft carrier, 30 submarines, 3 cruisers, 6 destroyers, and 

10 torpedo boats. Some of the vessels are said to have been brought up 
from Tuapse and Gelendzhik. 

The Armed Forces High Command has received reports on large-scale evac- 
uation transports from the Tuapse area to the south. 

On 6 Aug., air reconnaissance observed few convoy movements in the Black 
Sea along the northeastern coast. 

According to an intelligence report from Sofia of mid-July, Fort 
Uritski (Aleksandrovsk) on the Mangyshlak Peninsula on the northeast 
coast of the Caspian Sea is now a base for the Caspian Sea Flotilla, 
with large stocks of fuel, docks, and barracks. 

On 5 Aug., photographic reconnaissance located 3 gunboats, 3 submarines, 

11 tankers, 15 steamers, 4 large lighters, and numerous small vessels 
riding at anchor in Baku. 

Own Situation ; 

Concerning the sinking of a Russian vessel by an Italian sub- 
marine chaser on the night of 2 Aug., the Air Commander, South reports 
in accord with the Italian subchaser flotilla command that, after 
checking all the data, he now shares the belief that 2 separate 



• GO- 



CQ1IFIDEIITIAL 
6 Aug. 1942 

enemy forces were involved on the night of the operation and that the 
Italian submarine chasers sank the cruiser KRASFY KRIM. 

This opinion is based on findings of the radio intelli- 
gence service (see V.'ar Diary 3 Aug.). 

The llaval Shore Command, Ukraine started the transport of personnel for 
Yeisk on 5 Aug. 

On the night of 4 Aug., our artillery fired on 1 enemy PT boat off 
Ivanbaba and several southbound vessels in the Kerch Strait. One of 
our boats had an engagement with an enemy vessel. Three of our men 
were wounded. 2 Russian mines which were adrift in the area off 
Mariupol have been detonated. 

I.line-sweeping operations are proceeding according to plan. The trans- 
port of supplies from Taganrog to Azov started on 4 Au^;. 

Special Items : 

(1) The Gorman llaval Attache in Rome reports on 5 Aug. that the 
Italian llavy has agreed to the transfer to the Caspian Sea of several 
small submarines, which are at ^resent operating in the Black Sea. In 
a conference with the Commanding Admiral, Croup South, Admiral 
Riccardi has finally agreed to transfer immediately 2 additional sub- 
marine chasers from Italy to the Black Sea area. The Italian Ad- 
miralty leaves it up to Group South to decide how many surface vessels 
and submarines are to be transferred from the 31ack Sea to the 
Caspian Sea. The Italian Admiralty expects the number to comprise 

some 5 submarines and 4 submarine chasers. 

< 

For the corresponding directive of the llaval Staff to Group South and 
the Admiral, Black Sea see Telegram 1919. 

(2) For Group South' s directive to the Admiral, Black Sea concerning 
the resumption of supply transports to Sevastopol, with copies to the 
Kaval Staff and the Navy Liaison Officer at the Army High Command, see 
Telegram 2020. 



VIII. Situation East Asia 

llo special reports have been received. 



IX. Army Situation 

1. Russian Front : 

Army Group A : 

Rumanian forces are advancing toward Yeisk. 2 important 
railway bridges fell into our hands undamaged. A similar success was 
achieved when our troops captured 2 other railway bridges on their ad- 
vance to- Ilovokursunskaya, Berenskaya, and Aleksandrole vskaya. Strong 
enemy forces are holding the south shore of the Kuban River between 
Ivropotkin and Timoshevskaya. In their advance from Armavir our troops 
have reached Kurgannaya. The advance toward Labinskaya has begun. 
P-et-rov-ek is free from --enemy -troops.— 

-61- 



CONFIDENTIAL 
6 Aug. 1942 

Arr.iy Group D ; 

South of Remontnoe, our forces gained ground towards the 
south and southeast. Enemy attacks 'near Kalach and Kletskaya were 
repulsed. The troops which crossed the Don on 5 Aug. have been an- 
nihilated. Near Korotoyak, strong enemy forces have pushed across 
the Don. Hungarian troops are mopping them up. Repeated enemy at- 
tacks in the vicinity of Livny were repulsed. 

Central Army Group : 

Armored units brought to the Rzhev sector succeeded in 
sealing off the point of penetration near Zubtsov. The penetration 
was extended up to the Gzhatsk River. 

Northern Army Group : 

Combat activity is reported near Staraya Russa, near Soltsy, 
and in the area before Leningrad. 

2. Finnish Front ; 

No noteworthy combat operations are reported. 

3. North Africa ; 

Artillery and reconnaissance activity as usual. Only small 
numbers of enemy planes were in action. 



-62- 



CON FIDENTIAL 
7 Aug. 1942 

Items of Political Importan ce 

India ; 

Gandhi stated in a press conference that he is not going to send the 
Congress resolution to the Viceroy as an ultimatum, but rather as a 
basis for further negotiations. He refused to assure the representa- 
tives of the press that he no longer wants to negotiate with Japan 
and remarked that, under certain circumstances, such negotiations 
might be in the interest of the Allies. 

Portugal ; 

Prime Minister Salazar gave the Temps a widely publicized interview 
on the dynamic forces of the present war. The text is reprinted in 
the Political Review No. 183, Paragraph 5. 

In view of the weakening Russian resistance, increasing anxiety is 
voiced both in Portugal and in Spain about the possibility that Great 
Britain may take steps to seize not only French but Portuguese and 
Spanish colonies as well. 

Great Britain ; 

The Secretary of State for War has announced the formation of a 
Palestine regiment consisting of Jewish and Arab companies. 

Japan ; 

In connection with the Indian problem, the spokesman of the Japanese 
Ministry of Information declared that, regardless of whether India 
will or will not become independent, Japan can never allow India to 
be used by the Allied forces for military purposes. 

The Army spokesman confirmed this statement, pointing out that, in 
case of a further expansion of anti-Japanese military activities, 
Japan will take decisive military steps against India. A compromise 
with Chungking is not possible. Only a complete extermination of the 
Chiang Kai-shek regime will lead to a lasting peace in Eastern Asia. 

Russia ; 

The official German news agency (DNB) repeats rumors from Lisbon ac- 
cording to which Churchill's alleged trip to Moscow was occasioned by 
Stalin's threat to enter into peace negotiations unless the Second 
Front is established. 



Conference on the Situation with the Chief, Naval Staff 

I. In his situation report, the Chief of Operations Branch, Naval 
Staff Operations Division states that, so far, the Turks have not ap- 
proached us in the question of the mine field off the Dardanelles. 

II. The Chief of the Quartermaster Division, Naval Staff reports that 
torpedo boat T "24" cannot be commissioned in October as scheduled 
because no officers are available. The crew from the destroyer LODY 
has already been assigned elsewhere. The Commander in Chief, Navy is; 
issuing orders to the effect that the vessel, including officers, mus^ 
under all ... circums tances be Jcaady..J!ar— .afirvlne .nn 15-Qat^— 19-42^. 



+63- 



CONFIDENTIAL 



7 Aug. 1942 



III. The Chief of the Naval Staff Quartermaster Division reports on 
the following: 

1. Organization of the Commanding Officer, Supply and Trans- 
ports, Black Sea who will have to face tasks of extreme importance 
during the next 6 weeks. 

2. The Fuehrer order concerning the release of shipyard 
workers. The minister for Armaments and War Production called the 
attention of the Chief of Staff, Armed Forces High Command to the 
effect which execution of this order will have on the other orders 
given him by the Fuehrer, and said that he night report these ob- 
jections to the Fuehrer. Since Minister Sneer has presumably left 
for the Fuehrer Headquarters, the Chief, Naval Staff Quartermaster 
Division will do likewise without further delay, in order to make 
every effort to see that the Fuehrer order, which he had brought 
about, Is actually carried out. 

3. The Italians have promised to begin with, to furnish 
personnel for 2 smoke detachments (Gdynia, Trondheim). The arrival 
of the personnel is expected around mid-August. So far, smoke- 
screening preparations are completed in Kiel, Eckernfoerde, and 
(by the Air Force) the Aasen Fjord. 

Smoke equipment is being provided for Gdynia, the Bo gen Bay, and the 
Alta Fjord. 

It is hoped likewise to equip V/ilhelmshaven, Emden, 3runsbuettel, 
Wesermuende, Pillau, l.lemel, Swinemuende, Stralsund, and Rudolstadt; 
in Norway: Trondheim (city and harbor), Bergen, Horten; In the west 
area: Rotterdam, Amsterdam, Ijmuiden, Bordeaux, Lorient, Le Havre, 
Cherbourg, Brest, St. Nazaire, La Pallice, and Boulogne; in the 
Aegean Sea area: Salamis. 

IV. The Chief, Underwater Obstacles Branch, Naval Ordnance Division 
reports that British aerial mines are likely to be equipped with 
acoustic firing devices. 

According to a report by the Mine Laying Experimental Command, the 
mines in question are British aerial mines which had been salvaged 
in the Hohwacht Bay and which show the same type of fastening de- 
vices as those used for the measuring equipment in the German LITB 
Gruen mines. It is very probable that the Germs n Fab III has been 
copied. It is therefore to be expected that, in addition to purely 
acoustic mines, there will also appear acoustic mines combined with 
the British induction firing devices. Defense measures are being 
prepared. 

The Naval Staff immediately passed on this information to Groups V/est 
and "Torth, the Commanding Admiral, Defenses, North, the Commanding 
Admiral, Defenses, Baltic Sea, and the Commanding Admiral, Defenses, 
West. 

V. The Chief of the Submarine Division of the Naval Staff has been 
directed to accept with thanks the Italian offer to furnish 500 ship- 
yard workers for submarine repairs in Bordeaux. 

VI. The Commander in Chief, Navy discusses certain aspects of his 
inspection tour in France and issues orders pertaining to them. 



-64- 



CONFIDENTIAL 
7 Aug. 1942 

For copy of the conferences and. Inspections held In Prance, as well 
as related requests and measures, 3ee l/Skl I b 19359/42 Gkdos. in 
File "Besichtigungsreise Ob. d.M. im nord-und v/estfranzoes. Raum" 
(Inspection tour of Commander in Chief, Navy In northern and western 
areas of France), appended to War Diary, Part G, Vol. II b. 

The Chiefs of the Naval Staff Quartermaster Division; the Communica- 
tions Division; the Underwater Obstacles Branch, Naval Ordnance Di- 
vision; and the Naval Ordnance Division are directed by the Naval 
Staff to take the necessary measures. 

VII. The Commander in Chief, Navy emphasizes that the data on the 
calibers of guns installed on the new Japanese battleships, which 
the Japanese have communicated to us as strictly confidential, must 
be kept absolutely secret. The Information was meant only for the 
Fuehrer, who, as recorded on 31 Jul., made certain decisions on the 
basis thereof with regard to German battleship construction. 

VIII. The Chief, Naval Construction Division reports on his negotia- 
tions with the Reich Commissioner of Maritime Shipping concerning the 
possibility of using Dutch shipyards for the "Hansa" construction 
program. The Reich Commissioner has agreed under protest to the out- 
come of the negotiations whereby some of these shipyard facilities 
have been left at the disposal of the Navy. 

The Commander in Chief, Navy agrees and points out that the Navy 
should show genuine interest in the realization of the "Hansa" con- 
struction program. 

The Chief, Naval Construction Division reports further on his nego- 
tiations with the Reich Commissioner for Maritime Shipping on the 
question of shipbuilding in Nikolayev. The Chief, Naval Construction 
Division considers it advisable that the Reich Commissioner of Mari- 
time Shipping, using the facilities allocated to him, be the only one 
concerned with construction of merchant ships in Nikolayev. The 
differing view of Naval Group South cannot be approved. When tonnage 
is required for transporting Caucasian oil, the tanker situation in 
the Black Sea will become extremely difficult. The Navy should not 
be burdened with this responsibility. The Chief, Naval Construction 
Division also recommends that the wishes of the Reich Commissioner of 
Maritime Shipping be complied with by placing at his disposal In the 
Black Sea area 6 port commanders with ample experience In transport 
service. 

The Chief, Naval Staff Quartermaster Division objects to this measure, 
which would mean that 6 urgently needed naval officers would be re- 
leased for duty as harbor inspectors, while other officers would have 
to replace them as port commanders. 

The Commander in Chief; Navy agrees with the Chief, Naval Staff 
Quartermaster Division in this point. As for the question of ship 
construction, a separate decision will be issued after further ex- 
amination. 

IX. Another point of friction with the Reich Commissioner of Mari- 
time Shipping is the question of turning over to him merchant ship 
tonnage which is now in the hands of the Navy. The Minister for 
Armaments and War Production interpreted the respective Fuehrer dir- 
ective (see War Diary 28 and 29 Jul.) as meaning that 300,000 GRT are 
to be released, instead of the 10$, or 250,000 GRT, ordered by the 
Fuehrer, and that the Navy is forbidden to use merchant ships as 



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CONFIDENTIAL 
7 Aug. 1942 

hospitals or barracks. (See Y/ar Diary, 8 Jul.) To the objections 
raised by the Chief, Quartermaster*' Division, Naval Staff, the 
Minister merely replied that he expects the Fuehrer directive to be 
complied with. Vice-Admiral Krancke will explain the matter to the 
Fuehrer personally. 

The difficulties which the Naval Staff feared would 
arise unless cooperation between the Navy and the 
Reich Commissioner of Maritime Shipping were fully 
ensured, are now beginning to show up. 

In a Very Restricted Circle t 

X. The Naval Representative on the Armed Forces High Command 
Operations Staff reports that the Chief of the Operations Staff of 
the Arined Forces High Command is in complete agreement with the 
Naval Staff's memorandum concerning Crete (see V/ar Diary 28 Jul.); 
however he does not believe that presentation of the memorandum to 
the Fuehrer will have the desired effect, since the Fuehrer has 
made it a basic point of his policy to consider the Mediterranean 
as part of the Italian lebensraum, in which Germany must have no 
aspirations whatsoever. This area, says the Fuehrer, which, for 
reasons of climate if nothing else, is unsuited for Germanic peoples, 
has repeatedly brought disaster to the German Reich in the course 

of history. 

The Naval Staff believes that eventually the arguments laid down in 
the memorandum will be proved correct by the dynamics of the mili- 
tary and political developments. It is therefore necessary to 
suggest these ideas to the Fuehrer now, regardless of his present 
attitude. In any case the memorandum was not intended to make him 
change his attitude, but was only meant to clarify the issues in- 
volved. The Chief, Naval Staff will take the opportunity to call 
the Fuehrer's attention to this subject briefly at the next con- 
ference. 

XI. No decision has aS yet been made concerning operation "Bluecher", 
As matters stand now, Army Group A again seems to emphasize the 
importance of maintaining the transport of supplies on the Don, 
while giving up the idea of launching an offensive across the Kerch 
Strait. 

The first operation of the 1st PT Boat Flotilla off Tuapse has been 
reported to the Armed Forces High Command. The approach route from 
the Crimean bases to an operations area off the Caucasian coast is 
too long for the small Italian submarines and submarine chasers. 

XII. The recent mine-laying operations launched by the enemy off the 
Dutch coast (mines have been located off Egmond-aen-Zee ) have 
promoted Group North to give up the plan of protecting the coast by 
laying our own mine fields as desired by the Army (sec V/ar Diary 1 
Aug.). Group North has notified Army Group D to this effect and 
recommended that the beach be extensively mined with contact mines. 

XIII. The report of the Chief of Operations Branch, Naval Staff on 
Group North's plans concerning the laying of mines in the sea area 
of Novaya Zemlya is recorded in the V/ar Diary of 30 Jul. Investi- 
gation has shov/n that the KOELN's radius of action is sufficient 
for her participation in the operation. 



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CONFIDENTIA L 
7 Aug. 1942 

The Chief, Naval Staff agrees and points out that the most dangerous 
of these operations should be carried out first. The Naval Staff 
will inform Group North. 

XIV. With reference to the Fuehrer's demand for an investigation into 
the possibilities of using mines to attack PQ, convoys during the 
winter (see War Diary 17 Jul.), the Naval Staff informs Group North 
of the Fuehrer directive concerning preparations by the Commanding 
General of tho 20th Army in cooperation with the 5th Air Force for an 
attack aimed at seizing the Murmansk Railway near Kandalaksha. Under 
favorable circumstances, this attack, which has been given the code 
name "Lachsfang", is to be carried out before winter sets in. 

The Fuehrer considers that one of the essential prerequisites for 
succeeding in this operation and exploiting the results is to pre- 
vent the Russians from reinforcing their troops in Murmansk, in other 
words to cut off sea communications to Murmansk this winter. 

Group North is therefore directed to investigate how this can be 
accomplished by extensive mine-laying. Suggestions are to be sub- 
mitted as soon as possible. 

Only a very restricted cirale is to be informed of operation 
"Lachsfang." 

XV. According to a directive of the Chief, Naval Staff (see War 
Diary 6 Aug.), the plan to employ naval forces against the QP convoy 
as soon as reconnaissance reports have come In is being communicated 
to the Armed Forces High Command, Operations Staff, with copies to 
the Fuehrer's Naval Aide and Group North. Naval forces other than 
submarines can be used only if the convoy passes within the radius of 
action of the destroyers; cruisers require the support of a battle- 
ship, and a battleship requires destroyers as protection. The opera- 
tion against the westbound convoy is planned so that our forces will 
not encounter the eastbound convoy, unless definite information on the 
expected heavy escort is available and our forces are not imperiled 
by aircraft carriers. 

For copy see Telegram l/skl I a 1531/42 Gkdos. Chefs, in File 
"Eispalast". 

The Chief, Naval Staff agrees. 



t&egial Items; 

I. On 20 Jul., the Military Attache In Santiago, Chile sent the 
fallowing report: 

"The U.S. Military Attache made the following statements to a. Chilean 
general on the over-all plans of the U.S.A. for the further conduct 
of the war: a large air force is being assembled in U.S.A., primarily 
for an offensive against Germany and Europe. Preparations will take 
another § to 6 months. The offensive will mainly be launched from 
th© gritish Isles which are being prepared for this purpose (occupa- 
tion of Ireland prior to this action might be necessary). A real mass 
attack will be employed in the operation without regard for losses. 
The first attaok will be directed against big cities (as thoroughly 
as possible) and against Industrial centers. Only after that will 



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CONFIDENTIAL 
7 Aug. 1942 

major Amy and Navy operations against the Continent be launched. 
Earlier similar operations are only of nuisance and training value. 
It makes no difference whether Russia has lost the Caucasus and other 
areas by then or not. The essential thing is to hold the Russian 
front as such, so that it can once more be used to tie up German 
forces at a later date. Furthermore, preparations are in progress for 
an offensive in Central Africa and the Nile valley in the direction of 
the Mediterranean and beyond, as well as for an offensive from 
Australia against the Japanese-occupied islands. Finally, an air 
offensive will be launched from Russian territories in the East 
against Japan. Preparation of air bases (particularly 150 to 200 km 
northwest of Vladivostok) has been under way for a long time; due to 
efficient camouflage, the Japanese have apparently failed to realize 
its extent. Part of the materiel has already arrived there. China 
plays the same role with respect to Japan as Russia with respect to 
Germany. The danger of a post-war spread of communism (which is not 
too important for America) must at this juncture be put up with." 

II. An extract from the study of the Control Inspectorate in Africa, 
dated 28 May, on French defenses in case of an Anglo-American offen- 
sive against Morocco is in War Diary, Part C, Vol. XVI. 

III. The Naval Communications Division, Intelligence Branch, acting 
in agreement with the Naval Staff, Operations Division, has issued 
designations and abbreviations for British ships. For copy see 
l/Skl 27018/42 geh. in War Diary, Part B, Vol. V. 

IV. The distribution of British naval forces as of 1 Aug. 1942, ac- 
cording to the findings of the Naval Communications Division, In- 
telligence Branch, can merely be taken as an indication of the actual 
situation, since for some time in the past only a very limited amount 
of information could be obtained about the movements of British naval 
forces. For copy see l/skl 26793/42 geh. In War Diary, Secret Radio 
Intelligence Reports. 



Situation 7 Auk. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

According to an intelligence report, the steamer QUEEN 
ELIZABETH was located on 3 Aug. on a southerly course at 18°E < ,34°S. 
On 27 Jul., the auxiliary cruiser ALCANTARA, after escorting a 
steamer as far as the latitude of Durban, began her return voyage to 
Cape Town. 

2. Own Situation : 

The German Naval Command, Italy reports that on 6 Aug. at 
noon the Italian repatriation ships ARCOLA and TAIGETE were proceed- 
ing at a speed of 8.5 knots on a course of 92° when located at 6° 
43' N, 34° 82' W. 

Via Radiogram 0108, ship "10" was notified of the arrival of the 
MADRONO in Yokohama on 5 Aug. 



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COHFIDEHTIAL 
7 Aug. 1942 

Radiogram 2017 informs the CHARLOTTE SCHLIEMAM that she can probably 
proceed to Japan at the end of August. 

Via Radiogram 2044, all vessels in foreign waters were notified that 
the permission for our submarines to attack unescorted vessels sail- 
ing alone on route "Anton" has been revoked for the area north of 20° 
N beginning 10 Aug. and for the area south of 20°N beginning 16 Aug. 
This puts the original order for route "Anton" back into effect, ex- 
cept for £he fact that the operations zone for the submarines along 
the Brazilian coast is not 300 but 400 miles wide. 

Information on enemy situation was given via Radiogram 0600. 



II. Situation West Area 

1,11 n . ■ ■ , , ■ i ■ 

1. Enemy Situation : 

Radio intelligence intercepted location reports of- a German 
force in the sea area of South Foreland „ 

2. Own Situatio n: 
Atlantic Coast : 

No incidents have been reported. 

Channel Coast : 

On the night of 6 Aug., the 4th PT Boat Flotilla was sent 
on a torpedo mission in quadrant BF 2298 but failed to sight any en- 
emy vessels. The 2nd PT Boat Flotilla carried out extensive mine- 
laying operations in quadrant 3192. For brief reports from the two 
flotillas see Telegram 1140. The 5th PT Boat Flotilla has carried 
out its mine operation according to plan. 

Enemy PT boats and motor gunboats repeatedly attacked the convoy of 
the SCHWABENLAITD en route from Boulogne to Dunkirk. Nevertheless, 
the convoy arrived in its port of destination at 0700 as scheduled. 
The attacks resulted In brisk engagements, partly at close range, be- 
tween the escort vessels of the 8th Mine Sweeper Flotilla and the 
enemy force which is estimated to have consisted of 2 to 3 flotillas. 
One enemy vessel was definitely sunk, 2 others were probably sunk, 
and 5 more were damaged. Radio intelligence has confirmed that the 
motor torpedo boat MTB "44" was sunk, another one was set afire, and 
a third one entered port in damaged condition. Our vessels were re- 
peatedly hit but remained fully ready for action. For the brief 
report of the 8th Mine Sweeper Flotilla see Telegram 1520. 

The participating vessels of the 8th Mine Sweeper 
Flotilla deserve full recognition for having so 
successfully protected the valuable ship in their 
convoy. 

Another engagement occurred during the same night off Barfleur between 
a group of the 38th Mine Sweeper Flotilla and some 8 British PT boats, 
2 of which were observed as probably sunk and others as hit. For the 
brief report of the 38th Mine Sweeper Flotilla see Telegram 1305. 



-69- 



CONFIDENTIAL 
7 Aug. 1942 

Other enemy PT boats fired on a group of harbor defense vessels off 
Calais, but our vessels remained at their position ready for action. 

The mine-detonating vessel "170" sank when hit by a mine off Ostend. 
Attempts are being made to salvage the wreck. 

The transfer of 3 boats of the 3rd Torpedo Boat Flotilla from St.- Halo 
to La Pallice is completed., Due to another mishap, torpedo boat T 
"4" has remained in St. Malo. 

Special Items ; 

(1) In July 1942, the enemy carried out 10 air raids on the forces 
of the Commanding Admiral, Defenses, V/est. Total losses: the net 
layer URANUS and the mine sweeper M "4008". Two steamers and 9 small 
vessels were damaged. 

(2) The Air Force General attached to the Commander in Chief, Navy 
has transmitted the urgent request of the 5th Air Force to transfer 
the catapult ship SCKY.'ABENLAND to the home base with the next convoy. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation : 

Except for fishing vessels, no ship movements were sighted 
off the southeastern and eastern coasts. 

Own Situation : 

Along the Dutch coast and in the German Bight, 10 ground 
mines were swept, 4 of them off Egmond-aan-Zee. The 8th I.!otor l!ine 
Sweeper Flotilla has executed the special mission "Erasmus I" ac- 
cording to plan. (Barrage EBP.) Operation "Erasmus II" is set for 
the night of 7 Aug. The Danish steamer LISE (1,247 GRT ) struck a 
mine north of Wangeroog and sank. During the night of 6 Aug., enemy 
planes flew in and out of the northern area and. approached Heligoland 
and Borkum. It is assumed that they dropped mines. 

2. Norway, Arctic Ocean : 

Enemy Situation : 

At 1732 an FW 200, using a radar location-finding set, 
located a target presumed to be convoy PQ 18, for the first time in 
the fog, at a distance of about 20 km. The location was quadrant 
AB 71. The target was not sighted. 

Own Situation : 

A Russian lead-horn,ed mine M 08 was cut on the convoy route 
off Mageroe in the area of the Commanding Admiral, Norway. On the 
night of 6 Aug. (at 0020), enemy planes unsuccessfully attacked our 
convoy off the Sylte Fjord. On 6 Aug., bombs were dropped on the 
Makkaul coast guard station without causing any damage. 



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CONFIDENTIAL 



7 Aug. 1942 



The 6th PT Boat Flotilla has been released from the area of the Ad- 
miral, Arctic Ocean. 

So far, our submarines have failed to regain contact with convoy PQ, 1G. 
The Admiral, Arctic Ocean considers a passage south of Jan I'ayen as 
unlikely and intends to let the patrol lines remain at their positions 
until 1700, on the assumption that ice and fog have reduced the day's 
run of the convoy. If, by that time, contact with the enemy has not 
been established, the Admiral, Arctic Ocean is nositive that the convoyl 
will pass either east or south of Jan Mayen. In this case, he plans 
to have the submarines proceed at wide intervals in position to inter- 
cept the convoy in the longitude of Bear Island. 

Group North takes further into account the possibility that convoy PQ 
18 might make a stop at Spitsbergen and then, depending on the ice 
conditions, proceed close to the coast, waiting for lower visibility. 
With 10 of our submarines involved in the operation, Group North con- 
siders it impossible that the convoy can slip between Bear Island and 
Spitsbergen without being seen or located. The Group believes it un- 
likely that the convoy will pass south of Bear Island. 

The Commanding Admiral, Fleet has taken over the command of the naval 
forces on board the TIRPITZ. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

4 

On the night of 5 Aug., a Russian submarine, escorted by 2 
mine sweepers of the FUGAS class and several motor mine sweepers, is 
presumed to have broken through the "Seeigel" minefield. Off Vigr-und 
a submarine returning from the Baltic Sea is trying to break through to 
Kroiistadt. Attempts by Russian naval forces to bring her in have so 
far "apparently been unsuccessful. Russian planes are in action against 
our submarine chasers. 

2 . Own Situation : 

■ 

No incidents occurred in the area of the Commanding Admiral, 
Defenses, Baltic Sea. Execution of the "Duesseldorf " mine operation is 
set for the night of 7 Aug.: submarine 7 J "119" will lay minefield XIV 
consisting of 66 rack mines type A between 57° 21.5' II, 7° 33' E, and 
57° 33.5' N, 70 23' E. 

In the area of the Commander, Mine Sweepers, Baltic Sea, the 27th Land- 
ing Flotilla has completed the "Lachs IV" mine operation according to 
plan , 

Subchaser "1212" sank east of Tytersaari as a result of a mine hit. 20 
men are missing. Mine sweepers I" "19" and M "17" suffered casualties 
through enemy air attacks off VIgrund. Group North has urgently re- 
quested the 1st Air Force to furnish fighter protection for this point 
in order to prevent any attempts on the part of the enemy submarines to 
return to Kronstadt Bay. Beginning 8 Aug., 1 flight of 5 fighters will 
be placed at the Group's disposal. In view of the new break through th£ 
"Seeigel" minefield, Group North has ordered that a minefield be 
laid immediately north of Vigrund and Namsi Bank, on the assumption 
that, so far, the Russians have penetrated the "Seeigel" 



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CONFIDENTIAL 



7 Aug. 1942 



mine field where the water was deepest, 



V. 



Submarine Warfare 



1. Enemy Situation : 

According to an intelligence report, 1 convoy departed from 
U.S. harbors to the British Isles on 5 Aug., and another left Gibral- 
tar in westerly direction on 7 Aug. Otherwise there is nothing to re- 
port. 

2. Own Situation: 



In the North Atlantic, the concact with the convoy in 
quadrants AJ and AK was lost from noon till around 2300. It was re- 
gained in quadrant AK 0177. No successes were reported from the op- 
erations against this convoy, in which a total of 12 submarines are 
participating. 

There are likewise reports on successes in the areas along the Ameri- 
can East Coast and off the West Indies. 

Of the submarines operating in the South Atlantic, U "572" reported 
sinking an 8,000 GRT steamer carrying ammunition in the Freetown area. 
This submarine sighted 3 steamers between 26 and 31 Jul., while sub- 
marine U "507" sighted nothing in the area from quadrant ES 50 up to 
FB 93 and back to FC 33 during the period from 23 Jul. to 7 Aug. It 
may be that, as a reaction to the appearance of our submarines off 
Freetown, the enemy has stopped all ship movements or ordered them 
widely dispersed. 

No successes have been reported from the Mediterranean either. 

According to radio decoding, on 5 Aug. an unidentified vessel picked 
up 31 survivors from the steamer EMPIRE OCEAN (6,750 GRT). It is 
possible that the steamer was sunk by submarine U "458". For details 
see Supplement to the Submarine Situation in War Diary, Part B, Vol. 
IV. 

Special Items : 

(1) The Naval Attache, Madrid reports that on 2 Aug. submarine U 
"573" was decommissioned in Cartagena. The submarine has since been 
flying the Spanish flag. 

(2) On 5 Aug., the Commanding Admiral. Submarines reported that sub- 
marines U "68", "156", "172", and "504* will form a group named 
"Eisbaer" and depart from Lorient by 19 Aug. for operations in the 
Cape Town area. After having reached the latitude of the Azores, the 
group is to proceed In reconnaissance line approximately through 
quadrant FE 10 to quadrant GG 10 where the accompanying submarine U 
"459" will refuel the group around 22 Sep. The equator will be 
crossed around 10 Sep. The Commanding Admiral, Submarines has re- 
quested general permission to attack on the entire route from the port 
of departure up to the point of refueling, whereas from south of that 
point until their arrival in the waters off Cape Town, the submarines 
are to attack only battlep^ns, aircraft carriers, and very large 
troop transports. 



<* 



-72- 



CONF 



7 Aug. 1941: 



Since none of our surface vessels will be at sea from east of 15 .! ^ 
to Cane Town at the time when the submarines enter* the South Atlantic, 
the requested freedo/n of attack could be granted for the route up to 
the refueling point. So for, the Cape Town area has been free of 
submariner,, with the heaviest enemy ship traffic converging there. If 
the submarines appear there suddenly without being detected before- 
hand, their chances will bo substantially Improved. However, attacks 
by the submarines on their approach route south of the .equator would 
reveal our elans prematurely. After having carefully considered all 
the advantages and disadvantages, the Naval Staff is of the opinion 
that success can be achieved only if every effort is directed toward 
the main objective, and the element of surprise is maintained. Con- 
sequently, the submarines should not only be forbidden to attack 
after they have crossed the equator but should also be ordered to 
avoid being detected. Only battleships and aircraft carriers nay be 
attacked when it is sure they can be hit. It is also particularly 
important that the submarines not communicate by radio with the com- 
mand or with each other. 

For copy of the respective telegram see l/Skl I u 1520/42 Gkdos, Chefs 
in War Diary, Part C, Vol. IV. 



VI. Aerial VJai-fare 

1. British Isles and Vicinity ; 

Successful raids were carried out on Edinburgh during the 
day. In addition, our planes raided several localities on the south- 
ern coast of England. During the night, bombs were dropped on Aber- 
deen, Nottingham, and Ipswich. Hits were observed. 

2 . Mediterranean Theater : 

Air reconnaissance over the Mediterranean failed to yield 
any results. In North Africa, air raids by strong enemy forces on 
our supply routes were not very effective. Forces of the Air Com- 
mander, Africa, flying free-lance fighter patrol and fighter cover, 
shot down 13 planes and lost one of their own. Taking off from 
Crete, our planes carried out reconnaissance and escort missions, as 
well as submarine chase. 

3. Eastern Front ; 

22 enemy planes were shot down on the sectors of the Central 
and Northern Army Groups. According to an intelligence report, the 
oil transport on the Volga has been alms t completely suspended to 
make room for military supply transports and for the evacuation of 
essential war cargo. 

One patrol vessel was damaged in the Gulf of Finland. 



VII. Warfare in the Mediterranean and in the Black Sea 

1. Enemy Situation, Mediterranean ; 

A submarine was sighted east of Kerkenna and another one 



-73- 



CONFIDENTIAL 
7 Aug. 1942 

southwest of Crete. According to an Italian report, the latter was 
sunk by an Italian torpedo boat soine 55 miles southwest of Cape Krio. 
Lively convoy traffic was observed off the Palestine coast. 

According to a belated intelligence report, 2 British PT boats de- 
stroyed an Italian submarine after a brief engagement off Beirut on 
9 Jul. 11 Italians were taken prisoner. The same report states that 
several British fleet vessels have withdrawn from the Mediterranean 
via the Suez Canal. 

2. Own Situation,' Mediterranean 

On the 'night of 5 Aug. and on the evening of 6 Aug., enemy 
planes raided Tobruk, causing slight damage. 

The Italian mine operation off Marsa Matruh has been executed. 

3. Transport of Supplies to North Africa ; 

Transport of supplies from Italy and Greece to North Africa 
and along the African coast proceeded according to plan. An enemy 
submarine sank the steamer WACIITFELS in the convoy proceeding from 
Crete to Piraeus. The convoy was escorted by 2 Italian torpedo boats, 
the auxiliary motor ship BARLETTA, and 1 submarine chaser, but had no 
air escort. The majority of the crew and passengers were rescued. 
Thus, we deplore the loss of the last large German steamer. 

On 6 Aug., 1,699 tons were unloaded in Tobruk. 

4. Area Naval Group South : 

Aegean Sea ; 

In view of the menace from enemy submarines, movements of 
convoys and small vessels in the Aegean Sea have been halted after the 
sinking, in addition to the Y/ACHTFELS, of another auxiliary sailing 
vessel on 6 Aug. and an unsuccessful six-fan *tack on the tanker 
RONDINE on 7 Aug. Group South expects intensified submarine action 
by the enemy against the supply route Piraeus-Crete-Africa of which 
he is now aware. The Group, therefore, considers it necessary to 
have more submarine chasers from Italy operate in this area. 

Black Sea ; 

Enemy Situation : 

Air reconnaissance reports the presence, at noon, of 1 
cruiser, 5 small warships, and 2 steamers in Tuapse. ' Only light ship 
traffic was observed in the Novorossisk -Tuapse area. On 6 Aug., 1 
submarine was located in the vicinity of the lighthouse on the Tendra 
Peninsula. 

2 small steamers and 7 other vessels were sighted in Primorsk Akhtar- 
skaya in the Azov Sea and 11 small steamers and 8 other vessels were 
sighted off the harbor. 35 barges, 60 motor boats, 20 tugs 7/ith 
barges, and 7 large rafts were observed on the Volga between Astrakhan 
and Stalingrad. An unarmed Russian motor fishing vessel carrying 
4,500 rounds of anti-aircraft ammunition has deserted the enemy in 
Akhtarsk and joined us in Osipenko. According to the captain's state- 
ment, mine fields have been laid along the coa-st from Akhtari up to 
Yeisk. Essential plants and shipyards have been destroyed, and the 
coastal batteries at Yeisk and Akhtari are withdrawing. 

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CONFIDENTIAL 
7 Aug. 1942 

Own Situation : 

Convoys in the Black Sea area are proceeding according to 
plan. 

The Admiral, Black Sea has reported from headquarters at Kerch that 
the operation of the 1st PT Boat Flotilla off Tuapse is to be re- 
peated during the night of 9 Aug. and that, due to the great distance 
from the operational harbors, no further forces are available for that 
mission. Group South has pointed out that, in view of the fact that 
the approach route from Feodosiya is 180 miles long, the PT boat 
flotilla can remain in the operations area- for a very short time only. 
The Group adds that, due to the present situation, the boats are 
needed for their assignment against Russian nuisance attacks and for 
flank protection in operation "Bluecher". The available naval forces 
can be used farther to the south only after operation "Bluecher" has 
been completed and a base situated farther south has become available. 
The Naval Staff has informed the Armed Forces High Command, Operations 
Staff, with copies to the Amy High Command and the Air Force Opera- 
tions Staff, that the' 1st PT Bo&t Flotilla is being sent into action 
against the southbound evacuation transports from the Tuapse area on 
the night of 7 Aug. and that a repetition of this operation is plan- 
ned for the night of 9 Aug. Because of the great distance between 
Tuapse and the operational harbors, no further forces are available 
at the present moment. 

Special Items : 

(1) The Italian Naval High Command reports through the German Naval 
Attache in Rome that, in order to prepare and carry out the transfer 
of further submarine chasers and small submarines from Italy and the 
Black Sea to the Caspian Sea, it is necessary to have information on 
transport conditions from Vienna via Rostov and from the Rumanian 
harbors via Rostov to the Caspian Sea. To save time, the Italian 
Naval High Command requests the Naval Staff to agree to a direct 
settlement between the Italian Naval High Command and the Naval Group 
South. The Naval Staff agrees on the assumption that Group South will 
take direct action on all further steps, with the Naval Attache in 
Rome participating in the negotiations with the Italian Naval High 
Command. A plane requested for gathering the necessary reconnaissance 
data must be made available from the area of Group South. The Naval 
Staff Quartermaster Division has been requested to assist Group South, 
if necessary. 

(2) According to the findings of the Naval Staff Intelligence Di- 
vision, it is not possible to transport the Italian subchasers from 
the Black Sea to the Caspian Sea by rail. The Intelligence Division 
has been requested to ask the Intelligence Division East of the Army 
General Staff for the most recent data on roads north of the Caucasus , 
between the two seas, obtained during the latest advance of the Army. 
The Naval Staff believes that tl.e Russians might have developed the 
roads even during the war, or that some of the roads in the German- 
occupied area are still being repaired and improved, a fact which 
would make it possible to transport Italian subchasers by land on 
special truck trailers. 



-75- 



CONFIDENTIAL 
7 Aug. 1042 

VIII. Situation East Asia 
Nothing to report. 



IX. Army Situation 

1. Russian Front ! 

Army Group A : 

Rumanian forces have reached the area before Yeisk. The 
southward advance continues against weaker enemy resistance. Our 
troops have reached Labinskaya south of Arnavir. Hear Armavir, fight- 
ing occurred between our troops and armed civilians, llorth of Petrov- 
skoe, our troops took Ipatovo. 

Army Group D : 

The enemy forces located west of Kalach were trapped after 
our troops closed the ring around them from the south, along the Don 
River. Break-out attempts are being prevented. The enemy penetra- 
tion north of Korotoyak has been somewhat widened. Fighting is still 
in progress against the enemy forces which had penetrated into the 
area near Voronezh. 

Central Army Group ; 

The enemy failed in his efforts to widen the penetration 
southeast of Rzhev. Our troops are fighting hard to mop up the breach. 

Northern Army Group : 

Combat activities are in progress against the enemy troops 
v/hich had infiltrated into the area southeast of St&raya Russa. Enemy 
attacks north of Novgorod and in the area of Soltsy were unsuccessful. 
Artillery fire shattered attacks and concentrations of enemy troops in 
the Leningrad area. ^ 

2. Finnish Front ; 

No noteworthy combat activities are reported. 

3. North Africa ; 

Reconnaissance and artillery activity as usual. Lively 
activity of enemy air forces is reported. 



-76- 



CONFIDENTIAL 
8 Aug. 1943 

Items of Political Importance 

Reuter reports that the British and the U.S. Ambassadors arrived in 
Moscow from Kuibyshev. The U.S. Ambassador in Ankara is also re- 
ported to be on his way to Moscow, as are the representatives of the 
Fighting French and of Norway. The meeting of these diplomats, in 
conjunction with the reports about Churchill's stay in Moscow and 
about the presence there of U.S. General Bradley, indicates that 
questions of decisive importance are being discussed at the present 
moment. The negotiations will probably center on the establishment 
of a second front in Europe, considering that Churchill probably went 
to Moscow in order to convince Stalin that Russia must under all cir- 
cumstances stick by the Allies, even if she has to suffer further 
heavy losses of -territory and life. Such losses could not be averted 
even if a second front were established, as is now being discussed. 

In other quarters, the discussion for and against the establishment 
of a second front in Europe is still going on. For details see 
Political Review No. 184, Paragraph 1. 

Concerning the shipping situation of the enemy powers , the head of 
the U.S. War Production Board has recommended that transport plane 
production be at least doubled, and that certain bomber types be 
converted into transport planes. The same agency has established 
a priority list for shipping in order to curb imports. 

Great Britain : 

The First Lord of the Admiralty said in a speech dealing with the 
achievements of the British Navy that despite heavy losses more 
ships are at present under the Admiralty's control than were in 
November 1918. Considerable losses are constantly being inflicted 
on enemy submarines, but -details cannot be disclosed. 

According to a statement by the Food Minister, Great Britain has 
ample bread supplies, and the food stocks are larger than at the 
beginning of the war. A further cut in the meat ration may, how- 
ever, prove inevitable. 

India : 

On 7 Aug., the long-awaited session of the All-India Congress Com- 
mittee was opened as scheduled. The Committee will address letters 
to Roosevelt, Chiang Kai-shek, Maisky, and other Allied leaders, 
with the request to support the Congress which will resist a 
Japanese invasion with all weapons of war as soon as the new resolu- 
tion has been adopted. Gandhi sent a special message to the Chinese 
people, stating that India is fighting not only for her own libera- 
tion but for the defense of China as well. 

Portugal : 

A report from a diplomatic source states that after the failure 
of previous negotiations the British Government has now presented 
an ultimatum to Portugal demanding permission for South African 
troops to proceed to Lourenco Marques via Mozambique. The ultimatum 
also demands authorization for the erection of a bunker station in 
Lobito, evidently intended for refueling convoys. Salazar's 
pessimism and ill health are indicative of the amount of British 
pressure being brought to bear on the Portuguese Government. 

-77- 



CONFIDENTIAL 



8 Aug. 1942 



Turkey ; 

On 6 Aug. , the new government received a unanimous vote of confi- 
dence from the National Assembly. 

A French source reports that the Turco-Syrian frontier has been 
closed. 

In his report on the military and political situation, the German 
Naval Attache states that Turkey's interest continues to be focused 
almost exclusively on the North African theater of war. Turkey fears 
with good reason that if Egypt and the Suez Canal fall she will be 
cut off economically and will no longer hold the balance of power 
of forces in the eastern Mediterranean which so far has enabled her 
to maintain the desired neutrality. There are as yet no indication 
of a basic change in Turkey's attitude. This attitude will depend 
on the further development of operations in Russia and Egypt. 

Brazil : 

The official German News Agency (DNB) reports that, according to an 
announcement in Stockholm by the Brazilian Government, only 483 
German citizens have been interned in Brazil, while more than 100,000 
continue their occupations completely at liberty. Furthermore, 
only a very small amount of property belonging to German citizens 
was confiscated as compensation for Brazilian ship losses and 
casualties. 



♦ 



Special Items : 

I. According to an investigation by the Naval Intelligence Divi- 
sion, Foreign Merchant Marine Branch, the losses in enemy or enemy- 
controlled merchant ship tonnage during the month of July 1942 
amounted to a total of 944 vessels or 1.095.894 GRT. 

Of these, 107 vessels totalling 563,316 GRT were sunk by our sub- 
marines 

11 vessels totalling 46,760 GRT were sunk by our sur- 
face vessels 

5 vessels totalling 3,446 GRT were sunk by mines 

and 28 vessels totalling 149,554 GRT were sunk by planes. 

The German share in the sinkings totals 162 vessels or approxi- 
mately 790,000 GRT, while the re6t is to be attributed to the 
Italians and Japanese. 

II. For the directive of the Commander in Chief, Navy to the Group 
Commands, the Fleet, the Commanding Admiral, Submarines, and the 
German Admiral, Rome concerning methods of dealing with differences 
of opinion in the War Diaries see l/Skl I a 17891/42 Gkdos. in War 
Diary, Part B, Vol. V.. 

III. In News Analysis "Foreign Navies" No. 39 the Naval Staff In- 
telligence Division, Foreign Navies Branch reports on the oil con- 
sumption of the British Navy in the various areas. The total an- 
nual consumption for the British Navy is estimated at 5,400,000 tons. 



* 



-78- 



CONFIDENTIAL 
8 Aug. 1943 

Situation 8 Aug. 1942 

I . War in Foreign Waters 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation ; ' 

On 7 Aug. at 2338 ship "23" sent the following message: 
"No steamer traffic in quadrants GC, FS, FL, FM, FN, FU, GG." The , 
Naval Staff confirmed the message via Radiogram 0122. 

At 0017, another short signal which could not be understood, was 
received from ship "23". Via Radiogram 1217, the ship was asked 
to repeat the message. 

Ship "28" sent the following message: "Have dismissed supply ship. 
Supply ship has 1,500 tons of fuel left. Have handed over 104 
prisoners." The Naval Staff confirmed the message via Radiogram 
0532. The Naval Staff concludes from the message sent by ship "23". 
at 2338 that ship "23", in agreement with ship :, 28", made a recon- 
naissance voyage through the above-mentioned large quadrants of the 
South Atlantic and that she was communicating this to Bhip "28". 
The Naval Staff assumes that the second message may have contained 
information on ship movements., The few messages intercepted by 
the radio intercept service confirm the report from ship "23". The 
Naval Staff believes that there is now less traffic in the central 
part of the South Atlantic than in the past few months, although 
there is still a little. Via Radiogram 1501, the Naval Staff in- 
formed ship "23" and ship "28" of this assumption. From the message 
sent by ship "28" at 0317 the Naval Staff concludes that ship "28" 
is again fully replenished with fuel, and that the CHARLOTTE 
SCHLIEMANN has been dismissed according to orders. 

Ship "28" is being notified of this assumption, as well as of the 
fact that the CHARLOTTE SCHLIEMANN has been informed that she may 
expect to leave the South Atlantic for Japan toward the end of 
August. Should the SCHLIEMANN already have set out on her voyage 
to Japan, ship "28" ia requested to indicate by number the date 
of the departure of the SCHLIEMANN when convenient. (See Radio- 
gram 1738.) 

Information on the enemy situation is sent out via Radiogram 2142. 



II. Situation West Area 

1. Enemy Situation : 

An intelligence report states. that on 15 Jul. a fast 
convoy of 16 or 17 ships, including the AQUITANIA and a large 
American ship carrying troopB from the U;S.A., arrived in the 
ports of northern Ireland. The convoy made the passage in 9 days 
and returned empty after 4 or 5 days. The unloading was per- 
formed in 3 shifts. The majority of the light escort vessels pro- 
ceeded to Limavady, a U.S. battleship to Scotland. The cruiser 
CHESTER was in Belfast. 

-79- 



CONFIDENTIAL 
8 Aug. 1942 

2. Own Situation : 

Atlantic Coast : 

A mine sweeper removed a ground mine off St. Nazaire. 

Due to a change in the state of readiness of the blockade-runners, 
the Naval Staff intends to change the sailing schedule and to have 
the following ships deoart during the new-moon period in September: 
the PASSAT, the PIETRO ORSELO, the IRENE, the SPICHERN, the 
BURGENLAND, the RIO GRANDE, and the BRAKE. 

Group West is being notified accordingly and directed to Drepare 
and provide for the departure of all these ships. Depending on the 
situation, Group West will have to see how many ships can actually 
leave. Copy of the directive as per l/Skl I k 1527/42 Gkdos. Chefs 
in War Diary, Part C, Vol. XI. 

Channel Coast : 

6 vessels of the 4th PT Boat Flotilla have arrived in 
Boulogne. Transfer of the SCHWABENLAND from Dunkirk to Flushing 
is set for the night of 8 Aug. 



III. North Sea. Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

No noteworthy reports have been received. Unfavorable 
weather conditions badly hampered air reconnaissance operations. 

Own Situation : 

Due to bad weather, special mission "Erasmus II" (barrage 
SW 102) had to be broken off. Mine-detonating vessels and mine 
sweepers removed a number of ground mines, including 2 north of 
Egmond-aan-Zee. In the evening the catapult ship SCHWABENLAND set 
out on her voyage from Flushing to Rotterdam. At noon, enemy 
planes unsuccessfully attacked an anti-aircraft ferry in the 
Scheldt estuary and the Rhine flotilla in the fairway of Wieling. 
On the night of 8 Aug. enemy planes flew over the German Bight, 
and probably dropped mines in that area. 

Special Items : 

The Armed Forces High Command, Operations Staff announces 
that the Commanding General, Armed Forces, West will not agree to 
the changes in the Navy's sector boundaries as suggested by the 
Commander, Army Group, Netherlands. Thus the sectors previously 
established by the Navy will remain in force. 

2. Norway. Arctio Ocean : 
Enemy Situation : 

On 7 and 8 Aug., air reconnaissance reported the Hinlopen 



-80- 



8 Aug. 1942 



Strait and the Olga Strait 
small drift ice areas were 
pass. Extensive fogs were 
bergen, reaching 
not be located. 



CONFIDENTIAL 



(Spitsbergen) free of pack ice. Only 
observed there. Steamers can probably 
observed between Eear Island and Spits- 
as far as Jan May en. Therefore convoy PQ 18 could 



Radio intelligence located 2 BritiBh vessels in the Archangel area 
up to the southern outlet of the Gcrlo Strait. 

Own Situation ? 

Russian moored M 08 mines „ some of which were rusty, were 
swept in the Porsanger Fjord." 2 Russian mines were swept on route 
"Rot" near point 70. It is quite possible that the Russians have 
anti-sweeping devices in that location. Enemy planes raided the 
coast guard station and battery at Havningsborg and near Kiborgnos 
without causing any damage. Convoy and transport operations pro- 
ceeded according to plan. 

Group North has agreed to the transfer of 3 Ar 196 planes, as sug- 
gested by the Fleet Command, after the LUETZOW has been brought 
back to the Baltic Sea. 

Group North has submitted the operations order of the Fleet Command 
for the transfer of the cruiser LUETZOW from Trondheim to the Baltic 
Sea (code name "Eiche"). Escort is to be furnished by the torpedo 
boats T "6", "15", "9", "12", and the tender F "1". The earliest 
date is set for 9 Aug., the latest for 15 Aug. 



IV. Skagerrak. Baltic Sea Entrances. Baltic Sea 

1, Enemy Situation ; 

According to a report from the Naval Attache in Stockholm, 
the Swedish Navy announced that it is taking very energetic action 
against the Russian submarines in accordance with orders issued to 
the Swedish naval forces. The Swedish Navy is convinced that it has 
definitely sunk 3 Russian submarines. 

2. Own 8it\iation ; 

Operation "Dueseeldorf " has been carried out as planned. 

Patrol and convoy pperations in the area of the Commanding Admiral, 
Defenses, Baltic Sea proceeded as scheduled, without incidents. 

Operations "Seehund I" and "Seehund II" in the area of the Commander, 
Mine Sweepers, Baltic Sea were broken off because of unsafe naviga- 
tion. 1 landing craft ran aground. 4 mines were 6wept in the gap 
of the "Nashorn" mine field. The Finns report that a small Russian 
vessel struck a mine in mine field "Seehund IV" and sank. 

Convoy and transport operations proceeded according to plan, without 
any incident. 



-01- 



CONFIDENTIAL 



8 Aug. 1942 



V. Merchant Shlnping 

According to an intelligence report, there ia no doubt that 
Great Britain has withdrawn about 300,000 to 330,000 tons from the 
freight traffic during the last 4 to 6 weeks and is keeping them 
in the British Isles. So far, it has not been possible to ascertain 
which vessels were withdrawn or any other details. The report 
deserves attention as a possible indication that ships are being 
made ready for landing operations. 

The Naval Intelligence Division, Foreign Merchant Marine Branch 
reports in Brief Report No. 24/42 about the number and kind of 
ships and ship movements in Gibraltar during the month of July, 
about tungsten shipments from Spain and Portugal to the British 
Isles, and about transport flying boat construction in the U.S.A. 
(5,000 70-ton Mars flying boats). 

The same report contains a critical analysis of ship production 
in the U.S.A. According to this analysis, the production in the 
U.S.A. began with 15 ships in January 1942 and gradually increased 
to 71 ships totalling 535,000 GRT in July. All in all, the ship- 
yards in the U.S.A. turned out 301 ships totalling 2,200,000 tons 
during the first half of 1942, in Britain 87 ships totalling 630,000 
tons, in Canada 30 ships totalling 225,000 tons, making a total of 
418 ships or 3,078,000 tons in the 3 countries. From this rate of 
development the Naval Intelligence Division concludes that nearly 
5,000,000 tons of new ships will have been added by the end of 1942, 



VI. Submarine Warfare 

1. Enemy Situation ; 

Radio intelligence intercepted special orders issued to 
a U.S. plane for finding a German submarine which had been sighted. 
The U.S. naval authorities have declared a mined area near Cape 
Hatteras where ships are not permitted to sail except under control 
of naval authorities. 

2. Own Situation : 

3 submarines are reported to have departed recently from 
Germany and 2 are reported to be outward bound from the harbors of 
western France. 

Ground fog and poor visibility outside the fog areas prevented the 
submarines of group "Nebelkoenig" from making contact with what 
was assumed to be convoy PQ 18. 9 of the boats have been assigned 
new attack areas in quadrants AB 3532, 3512, 3546, 3593, 3821, 
3917, 3859, 3975, and 6234. Submarine U "255", the 10th in the 

froup, i8 to patrol the eastern exit of the Hinlopen Strait 
Spitsbergen) at approximately 22° E. The 2 boats in the eastern 
seotor of the operations area are to take up their oositions in 
quadrants AC 98 and 99, with permission to advance to quadrant 
AW 32 if necessary. 

The operation against the eastbound convoy in quadrant AK was 
continued. However, fog and rain squalls greatly hampered the 
use of arms. Submarine U "704" reports that one 7,000 GRT steamer 



-82- 



CONFIDENTIA L 
8 Aug. 1942 

and one 4,000 GRT steamer in this convoy were torpedoed and 2 
st earners totalling 15,000 GRT sunk. Other submarines reported 
misses, and that they were driven off by escort forces. 

Submarine U "254" reports 2 probable hits on 1 destroyer in the 
North Atlantic (quadrant AE 7137) on 1 Aug. 

Submarine U "508" reports 1 definite and 1 probable hit on a group 
of vessels in the West Indies. From the same area, submarine 
U "155" reports sinking a 9,000 GRT tanker in quadrant EO 61 and 
the steamer DRACO (2,018 GRT) by gunfire. 

Submarine U "109" of the South Atlantic group sank the armed tanker 

ARTHUR W. SEWALL (6,030 GRT). 

Thus definite sinkings alone totalled 40,048 GRT on that day. 

For details see supplement to the submarine situation in War Diary, 
Part B, Vol. IV. 



VII. Aerial Warfare 

i 

1 . British Isles and Vicinity ; 

Main targets. of our raids were Poole during the day and 
Leeds at night. 

During the night, small numbers of enemy planes flew over Jutland 
and the Baltic Sea entrances as far as Kiel and Heide, evidently 
with the purpose of dropping mines. 

No bombs were dropped in the west area. 

2. Mediterranean Theater ; 

Our fighter attacks on Malta resulted in 3 enemy planes 
shot down. 20 Me 109' s fought against 35 Curtiss planes. Our 
fighter-bombers scored well-placed hits in their operations against 
enemy motor vehicle concentrations in Alamein. On the night of 
7 Aug. enemy planes carried out heavy raids on Tobruk and Marsa 
Matruh. 

For reconnaissance results in the eastern Mediterranean see Enemy 
Situation, Mediterranean. 

3. Eastern Front ; 

Reconnaissance flights were carried out over the Black 
Sea and the Sea of Azov, as well as over the Arctic Ocean. For 
results see Enemy Situation, Black Sea and Arctic Ocean. A Ju 88 
attacked an enemy mine sweeper off Lavansaari in the Gulf of 
Finland. Effects were not observed. 



-83- 



CONFIDENTIAL 



8 Aug. 1942 



VIII. Warfare in the Mediterranean and Black Sea 

1. Enemy Situation. Mediterranean : 

No reports have as yet been received concerning the 
EAGLE task force. The radio intercept service reports that a 
British plane dropoed depth charges on 1 submarine in the western 
Mediterranean. A British submarine was sighted off Cape Vaticano. 
German air reconnaissance reports that 1 mine sweeper was proceed- 
ing with 6 small vessels on a northwesterly course off Valletta. 
On 7 Aug. photographic reconnaissance located 2 cruisers, 5 des- 
troyers, 3 escort vessels, 4 tankers, 8 steamers, and other vessels 
in Beirut. Ship traffic observed in the Port Said area was light. 

2. Own Situation. Mediterranean ; 

Enemy air raids on Tripoli and Bardia, carried out on 
the night of 7 Aug., failed to cause any damage. At dawn enemy 
planes attacked the Italian landing craft which had entered Marsa 
Matruh. 2 barges sank, while a third one suffered engine damage. 
The main pier of Tobruk was completely destroyed in the air raid 
on 6 Aug. The steamer ANKARA, loaded with German supplies, was 
slightly damaged. On the basis of a communication received from 
the Commanding General, Armed Forces South, the German Naval Command, 
Italy reports that the air defenses of Tobruk have been reinforced 
by a heavy battery and the air defenses of Marsa Matruh by a third 
medium battery. The light half-battery in Bardia is to be rein- 
forced by another half-battery. The question of air escort for 
convoys proceeding to Tobruk and Marsa Matruh has been settled 
with the Italian Air Force. Our planes can be used as reinforce- 
ments. 



Concerning the state of readiness of the naval forces under its 
cormand, the German Naval Command, Italy reports as follows: 



a. 3rd PT Boat Flotilla: 



2 boat 8 ready for action in Marsa Matruh 
2 in Su1a, 4 in Augusta. Out of Com- 
mission: 4 boats 



6th Motor Mine Sweeper 
Flotilla: 



c. 2nd Landing Flotilla: 



4 boats ready for action in North Africa, 
2 boats out of commission, 1 boat was 
lost. Attempts are being made to sal- 
vage the 8th boat in Bardia. 

Of the 35 landing craft completed, 10 
have been lost, 3 are in repair, 6 are 
being brought back for complete over- 
haul, and 5 are being equipped. 11 
barges are in North Africa, all ready 
for action. 

In view of the increasing damage to these vessels, the German Naval 
Command, Italy declares that it is urgently necessary to provide 
light armor elating for engines, guns, and command stations, as 
proved effective in the area of the Commanding Admiral, Defenses, 
'Test. 

The Naval Staff Quartermaster Division will act on the matter. 

3. Transport of Supplies to North Africa : 

Transport of supplies from Italy and Greece to North 
Africa and along the North African coast proceeded according to 



# 



-84- 



CONFIDENTIAL 
8 Aug. 1942 

plan, with no incidents to report. For details see Telegram 1230. 

4. ' Area Naval Group South ; 

Aegean Sea ; 

The submarine chase brought no results. In connection 
with' tlfe loss of the steamer WACHTFELS, Group South transmitted as 
preliminary information the report from the Admiral, Aegean Sea, 
whom the Commanding General, Armed Forces, South had also asked for 
a statement on this matter; according to this report, someone on 
the staff of the Admiral, Aegean Sea was responsible for neglecting 
to obtain the necessary air escort for the convoy. A court-martial 
investigation has been ordered. For details see Telegram 2045. 

Convoy operations proceeded according to plan. 

Black Sea : 

Enemy Situation ; 

German air reconnaissance observed a small number of ships 
in the harbor and moderate traffic along the southeast coast of the 
Sea of Azov moving generally toward the south. Movements of small 
southbound vessels were also observed in the Kerch Strait, and light 
traffic was observed in the Novoroesisk-Tuapse area. 

Own Situation : 

On 7 Aug., a submarine unsuccessfully attacked a south- 
bound convoy north of Sulina. Submarine chasers have been sent 
into action. On 6 Aug., a detonation was observed in our anti- 
submarine barrage southeast of Balcik. 

On the night of 7 Aug. another 12 landing craft passed through the 
Kerch Strait toward the north without making contact with the enemy. 
The last breakthrough, with 3 landing craft, is set for the night 
of 8 Aug. 

On the night of 7 Aug. 3 Italian submarine chasers took up their 
positions in the patrol line south of Cape Opuk in order to pro-, 
tect the break-through of the landing craft-. 

On the afternoon of 7 Aug. 4 boats of the 1st PT Boat Flotilla de- 
parted from Tuapse into their area of operations. 

5. Special Items : 

The Naval Staff Operations Division informs the Naval 
Staff Quartermaster Division of its opinion on the tasks of the 
Nikolayev shipyard as planned by the Naval Construction Division 
( see War Diary 3 Aug.). 

For copy l/Skl I a 19013/42 Gkdos. in War Diary, Part C, Vol. XIV a. 



-85- 



CONFIDENTIAL 
8 Aug. 1942 

IX. Situation East Asia 
Nothing to report. 



X. Army Situation 

1. Russian Front ; 

Army Group A ; 

Parts of a Rumanian division are fighting for the pos- 
session of Yeisk. 

The German and Rumanian forces pushing toward the south reached the 

region of Angeliskaya on their advance along the railway line to 

Krimskaya. The troops advancing toward Krasnodar broke through the 

strong fortifications and the anti-tank ditch 25 km north of Krasnodar m 

are now engaged in a fight with strong enemy defense forces. Ad- ~ 

vance detachments of the 13th Panzer Army are 8 km from Maikop. 

East of this point, 1 motorized division crossed the Laba River. 2 

panzer divisions pushing southeast from the Voroshilovsk area have 

reached the area of Aleksandrovskoye and the area west of Pyatigorsk 

without making contact with the enemy. An infantry division is 

advancing on both sides of the Sal River from Remontnaya toward the 

east. 

Army Group B : 

The XLVIII Panzer Corps is engaged in a fierce battle 
south of 8talingrad where the enemy is constantly getting rein- 
forcements. The enemy forces west of Kalach are being cut off with 
increasing effect. Outside the Italian positions in the Baskovski 
area the enemy succeeded in crossing the Don River. West of Svoboda, 
Hungarian units are fighting with armored enemy forces at the Don 
River. 

Central Army Group ; 

Stubborn fighting in the vicinity of Rzhev continues. fl 

The enemy succeeded in gaining ground on bo.th flanks of the point 
of penetration. New German forces launohed a counterattack. 

Northern Army Group ; 

Enemy troops made unsuccessful attacks near Kholra, at 
the land bridge southeast of Staraya Russa, and near Soltsy. 

2. Finnish Front : 

Enemy attacks northwest of Leningrad were repulsed. 
Finnish artillery attacked enemy assembly positions on the Svir 
front and near Povlents. 

An enemy attack is expected on the Loukhi front. 

3. North Africa ; 

So far no report has been received. 

-86- 



CONFIDENTIAL 
8 Aug. 1942 

4. Speolal Item : 

For the report of the Naval Liaison Officer with the Army 
General Staff made to the Chief of Staff, Naval Staff containing 
information on the Army situation on 8 Aug. see File "Barbarossa". 

************************* 



-87- 



CONFIDE:: HAL ' 

9 Aug, I9I42 
Sunday 

Items of Political Importance 

The United Press reports that the purpose of the Moscow confer- 
ence is to work out a joint strategic plan, pointing out that 
there "are 11 different Allied high commands as contrasted with 
the tight organization of the German Armed Fo.-ces. According to 
another United Press report, General Bradley is negotiating about 
increased plane deliveries. He is said to have declared that 
the problem of the second front does not come under his authority. 

U.S.A. : 

The Navy Department published a report on the Amerio-an conduct 
of the war and on war production during the first 8 months. So 
far, American industrial production is considered unsatisfactory. 
luost urgently needed are small naval forces, designed to cope 
with the submarine menace. During the first 6 months ship losses 
exceeded the number of nev.ly built ships; at present, however, 
the losses have decreased and the number of new ships has grown. 

India : 

Eeuter reports that the All -India Congress Committee has passed 
the freedom resolution of the working committee. On 9 Aug. the 
British Government in India had Gandhi and other Indian Congress 
leaders arrested in Bombay. At the same time, it authorized the 
governments of the provinces to suspend the authority of the 
local agencies throughout the entire country whenever they con- 
sider such a measure necessary for the maintenance of peace and 
order. This confirms the previously expressed assumption that 
the British Government is determined to keeo the situation in 
India under control by applying the strongest measures. 

Japan ; 

A report from Japanese Headquarters about a major engagement 
between the Allied and Japanese naval forces off the Solomon 
Islands indicates that the Allies, particularly the Americans, 
are making an attempt to obiain control of. the strategically 
important points in the South Pacific in order to protect their 
sea routes to Australia and Australia herself. For details 
see Situation East Asia. 



Special Items ; 

I. In a detailed situation report, the Naval Staff Operations 
Division expressed its views about pocket battleship operations 
in foreign waters during the coining winter. The report comes to 
the conclusion that the prospect of success for operations in the 
South Atlantic, South Pacific and possibly in the Indian Ocean 
is as good as before June 19i|l when the SCIIEEK carried out her 
first successful operation. In addition to the expected sinkings, 
the appearance of a pocket battleship will force the enemy to take 
much stronger defense measures than at present. Consequently he 
will withdraw forces from other theaters, if he feels that he can 
do so. In view of the present over-all situation, the Naval Staff 

-88- 



CONFIDENTIAL 
9 Aug . 191+2 

rates the indirect effects of the appearance of a pocket battle- 
ship in foreign waters extremely high. Actually, only in the 
South Atlantic would an operation be feasitle during the short' 
period of 2 months available, but this period would be sufficient 
for giving the pocket battleship the chance to operate effectively 
in all areas of the South Atlantic. Enemy countermeasures will 
not have to be taken into account before approximately one month. 
If the enemy is tied up at other points simultaneous ly, his counter- 
measures will be correspondingly weaker. The problem of supplying 
the pocket battleships will not present any particular difficulties 
since ample experience and means are available. However, the 
conditions for the breakthrough and return have become more difficult. 
The good chances of success in the operations area compensate 
for the risk involved. 

The Naval Staff Operations Division, Operations Branch therefore 
suggests that the SCKEER operate in the South Atlantic from mid- 
November lQl+2 to end of March I9U3 . See l/Skl I k/l op II45I4.A2 
Gkdos. Chefs, in War Diary, Part C, Vol. I. 

II. Certain difficulties have arisen between the German and 
Italian Navies concerning the courses for the vessels carrying 
home Italian citizens from East Africa in connection with the 
minefields laid by the DOGGERbANK on the Agulhas bank. Disregard 
of the German wishes concerning these courses has largely contri- 
outed to promoting the British plan for using the Italian repatria- 
tion ships indirectly as mine sweepers. For copy see l/Skl I k 
II7I1/I4.2 Gkdos. Chefs, in Y;ar Diary, Part C, Vol. I. The telegrams 
sxchanged on this subject between the Germans and the Italians 
Trom Jl Mar. to 28 Jun., as well as a map, are appended. 

til. The Minister of Armament and Ya'ar Production reported to the 
Var Economy Branch of the Naval Ordnance Division that during the 
jonferences on 2J, 2l\ and 25 Jul. the Fuehrer declared that, 
3ven when the operations in the East are successfully concluded, 
production of Army equipment must continue on the same footing 
as that of the Air Force because future operations require this. 

Cn addition, the Fuehrer has decided that the merchant ships 
3cheduled for construction should be equipped with derricks that 
3an lift as much as 65 tons. The Fuehrer will not compromise on 
this demand. 

IV. In the conference between the Naval Staff Submarine Division, 
the Naval Construction Division, the Executive Office of the 
Commander in Chief, Navy, and Mr. Walter concluded on 16 Jul. 
it was decided that constructing the type V 300 submarine would 
not provide a submarine suited for the Atlantic any sooner than 
building the small boats type VvA 201 now, and immediately after- 
wards designing a large boat. This large boat, designated as 
V 3°1» would be 800 tons, have a surface range of 7,000 to 
8,000 miles, a surface speed of 15 knots, submerged speed of 26 
to 27 knots, would be armed with J4. tubes at the bow, and carry 
16 torpedoes. The complete design would take about li months, 
after which it would have to be decided .whether to build such a 
submarine. According to Mr. Walter, 2 WA 201 submarines will be 
completed by 1 Sep. 19^3« The Navy could take them over in the 
spring of I9I4J4.. 



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CONE IDENTIAL 
9 Aug. 19U2 

Situation 9 Aug. 19^2 

I. Y<ar in foreign '..aters 

1. Enemy Situation : 

In the afternoon radio intelligence intercepted 2 QQQ 
messeges from the British steamer DALHOUSIE (7,022 GET) reporting 
that a suspicious vessel fired on her at 20° S,25° W. 

It is highly probable that our auxiliary cruisers 
are involved. 

According to an Intelligence report, on 6 Aug. at I72O an aircraft 
carrier was proceeding at a speed of approximately 20 knots on a 
northerly course I4. miles off Port Etienne (French West Africa). 

Another intelligence report states that on 5 Aug. a reliable agent 
observed 5 British warships proceeding northward after their de- 
parture from Funchal. 

According to the same report, the Irish steamer CITY OP DUBLIN 
loaded 2,000 barrels of fish oil in Lisbon supposedly for 
Eire but actually destined for England. 

The Foreign Office reports that the Portuguese steamer SAN &HGT7EL 
is scheduled to depart from Baltimore at 1000. 

Independent of the Foreign Office communication, 
the Naval Attache informed the Portuguese Govern- 
ment on 5 Aug. about the safe courses in the 
Chesapeake Bay. 

2 . Own Situation : 

On £ Aug. at 2316 ship "23" reported that she had 
transferred her operations area to the large quadrant FE. She 
also confirmed by a "yes" that she still wants the 2 Ar I96 
planes (see Y.ar Diary 29 Jul.). The Naval Staff confirmed 
the message via Radiogram 0039» 

At O3I7 ship "28" reported meeting ship "23" in quadrant GD 22* 
The Naval Staff confirmed the message via Radiograms 0612 and 
1555. In the latter, the Naval Staff states that it assumes that 
the two ships coordinated their further operations and are now 
en route to their new operations areas. 

The Naval Staff approves the transfer of the operations varea 
into large quadrant FE as reported by ship "23", assuming that 
arrangements were made with ship "28" in case the boundaries of 
the operations area are crossed. Ship "23" is being informed 
accordingly via Radiogram lo22, and at the same time her attention 
is called to the fact that the submarine operations area was ex- 
tended until 16 Aug., and that German submarines are at present 
operating in that area. The demand for .planes will be examined. 
However, it is no longer possible to send the planes on the 
auxiliary supply ship PASSAT assigned to ship "23". 

Since ship "23" failed to repeat the garbled short signal as 
requested in Radiogram 1217 on 8 Aug., the Naval Staff assumes 

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CONFIDENTIAL 
9 Aug. 19^2 

that its Interpretation of the text of the short signal (see 
War Diary £ Aug.) was correct and that no further reply is to be 
expected. 

Ships "23" and "28" are notified of the Q^Q messages sent out 

by the steamer DALHOUSIE and asked which of the two auxiliary cruisers 

was involved (see Radiogram 2200). 

Via Radiogram 2001 the blockade -runner UCKU'RMAKK is Informed 
about ships, the names of which could be used for camouflage pur- 
poses. 

The German Naval Command, Italy informs the Commanding Admiral, 
Submarines and the Air Commander, Atlantic Coast, with copy to 
the Naval Staff Operations Division, about the positions of the 
Italian repatriation ships ARCOLA and TAIGETE on 8 Aug. at noon. 

Via Radiogram 2157 a ll vessels in foreign waters are informed 
about the announcement of the Japanese Navy of 7 Aug. concerning 
the successes scored in the engagement between the Japanese fleet 
and the Anglo-American fleet off the Solomon Islands on 7 Aug., 
as well as about enemy convoy movements in the South Atlantic 
during June and July. 



II. Situation West Area 

1. Enemy • Si tuat I on ; 

4 

Air reconnaissance located II4. steamers lying in The. 
Solent. At the same time it spotted a force of 6 destroyers 
and probably a light cruiser on southerly course off Selsey 
Bill. 8 to 10 steamers were observed lying off Portland. 

2. Own Situation ; 

Atlantic Coast ; 

3 ground mines were swept off Lorient and in the 
Gironde estuary. 

Group West ordered blockade-runner UCKERMARK to depart on 9 Aug. 

Channel Coast ; 

Torpedo boat T "I)." is scheduled to transfer from St. 
L.alo to La Pallice during the night of 9 Aug. During the night 
of 8 Aug. a patrol vessel and accompanying forces made contact 
with British motor gun boats off Calais. 2 vessels of the 
harbor defense flotilla of Boulogne took part in the engagement. 
Several direct hits were observed on the enemy vessels. Our 
forces were missed by 3 torpedoes. 

For brief report of the harbor defense flotilla of Boulogne and 
the battle report of the 2nd Coast Patrol Force see Telegrams 
1715 and 19^5. 

In the afternoon several enemy fighter groups flew over the Belgian 



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confidential 

9 Aug. l^lj.2 

and Trench coasts. The battery "Schuette" fired on 30 Spitfires. 



I ll, North Sea, Norway, Arctic Ocean 

1. North Sea : 

Energy Situation : 

Air reconnaissance reports that in the evening 10 to 
15 steamers arrived at Newcastle. 15 southeastbound steamers 
were sighted off Flamborough Head. 

Own Situation : 

1| ground mines were swept off the Dutch coast and in 
the vicinity of the Frisian Islands. Towing attempts were unsuc- 
cessful and the Swedish steamer SIGYS s&nk as a result of a mine 
hit off Den Helder. The transfer of the catapult ship SCHV.AEENLAND 
from Flushing to Rotterdam is completed. In the afternoon an 
enemy plane flew a reconnaissance mission over the German Bight 
as far as Kiel and returned via Esbjerg. IZnemy planes yjsre very 
active in the area of the Admiral, Netherlands. Naval anti-air- 
craft guns shot down 2 planes, 

2 . Norway, Arctic Ocean : 

Bneny Situation : 

According to intelligence reports from Switzerland sent 
in the beginning and toward the middle of July, there is again 
talk about British and American operations planned in northern 
Norway. On the other hand, no commando raids will be undertaken 
in the west area for the time being. According to a statement 
by a British air attache, the British High Command wants to be 
firmly established in northern Norway by fall. 

Radio intelligence reports that 2 British vessels were between 
the southern outlet of the Gorlo Strait and Archangel. Air 
reconnaissance over the Arctic Ocean failed to yield results. 

The submarines have so far likewise failed to reestatlish contact 
with convoy P^ 18. 

Own Situation : 

Artillery fire directed from the Rybachi Peninsula against 
a picket boat on 7 Aug. was ineffective. On the afternoon of o Aug. 
an enemy submarine unsuccessfully attacked a westbound convoy with 
2 torpedoes, uecause of poor visibility, the Naval Shore Coomand 
Kristiansand South ordered a first-degree alert for its area. The 
patrol vessel TAIFUN sank off Lerwik as a result of a collision 
with a Norwegian steamer. 

Group North ordered execution of operation "Eiche" for 10 Aug. 

Vsith regard to convoy P^ 18, Group North fully approves the measures 
taken by the Admiral, Arctic Ocean for submarine attacks. Group 
North is entirely convinced that the observations by submarine 

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CONFIDENTIAL 



9 Aug. 19i|2 



U "i|05", which are the only evidence so far that convoy P^ 16 
is en route, are correct. Unless further sighting reports 
are received, Group North recommends that the patrol line be 
gradually shifted toward the east. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

A Finnish report states that I4. Russian destroyers are 
in Kronstadt ready for action. 

2. Own Situation : 

In the area of the Commanding Admiral, Defenses, Baltic 
Sea a total of 3 ground mines were swept west of Samsoe and off 
Schleimuende. All other operations proceeded according to plan. 

In the area of the Commander, Mine Sweepers, Baltic Sea, submarine 
patrol, mine-sweeping, and convoy operations proceeied as scheduled, 
with no incidents to report. 

For attempts on the part of Group North to have the Admiral, 
Amphibious Forces furnish 3 heavy guncarriers for the Commander, 
Mine Sweepers, Baltic Sea without being given the requested motor 
mine sweepers as replacements see Telegrams 12^5 and 2136. 

The Naval Staff Quartermaster Division has -taken 
up the matter. 

For orders by the Ministry of Transportation concerning compulsory 
escort for ships carrying personnel on leave see Telegram 1325* 



V. Submarine V.arfnre 

1. Enemy Situation : 

Reconnaissance in the North Atlantic reported the presence 
of submarines 3OQ miles south of Reykjanes and 3?0 miles west of 
Rockall Bank. British vessels were sighted 180 miles northwest 
of Porcupine Bank and ISO miles northwest of the northern outlet 
of the North Channel. Reconnaissance activity in the southern 
rendezvous area was particularly lively in the Bay of Biscay. 1 
submarine was attacked I50 miles northwest of Cape Villano and is 
presumed to have been hit twice. 

Another submarine was sighted proceeding on a westerly course 
200 miles north of Cape Ortegal. Half an hour later a British 
vessel was located in the same area. 

According to an Italian report from an allegedly reliable source, 
on 1 Aug. a large convoy of 5 passenger steamers and 20 freighters 
under heavy escort consisting of 1 aircraft carrier, presumably 
of the ILLUSTRIOUS class, 5 cruisers, and 12 destroyers, with 



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CONFIDENTIAL 



9 Aug. 191+2 



25,000 men aboard, departed. irom Freetown for Egypt. 

In addition to several submarine sighting reports off the American 
east coast and in the '.Vest Indies area, reports about submarine 
attacks were intercepted from the area northeast of Georgetown. 

2. Own Situation ; 

No incidents of importance occurred in the Arctic Ocean. 

In the North Atlantic, submarine D "]i+6" sank an Immobile 7,000 
CRT steamer from the convoy in quadrant AK. Submarine U "595" 
probably torpedoed a destroyer. After 2000, strong enemy air 
escort broke off the contact between the submarine and the convoy. 
The operation is being continued. 



*o 



From the American coast, submarine U "09" reports execution of 
the mine operation off Jacksonville according to plan. For the 
time being, the submarine tanker U "I+63" is supplying the sub- 
marines as planned. 

Submarines in the West Indies area were informed that Georgetown 
is probably a refuelling station for convoys running between New 
York and Freetown. Of the submarines 'operating in the South 
Atlantic, submarine U "I30" reported sinking the tanker MALMANGER 
(7,07g GET) in quadrant ES 51J+J+. 

Of the 3 submarines sent Into action in the western Mediterranean 
according to a Naval Staff directive, submarine U "331" must be 
withdrawn to Spezia on account of damage from aircraft bombs. 
Submarines U "73" and "205" were ordered to occupy the northern 
and southern halves of quadrant CH $1, 

For further details see supplement to submarine situation In War 
Diary, Part B, Vol. IV. 

3« Special Items ; 

a. The directive concerning submarine attacks on 
route "Anton" (see War Diary 6 Aug.) has been changed on account 
of the departure of the UCKERIvIARK to the effect that attacks are 
prohibited north of 20° N effective immediately, and south of 20° N 
effective on ll+ Aug. The Commanding Admiral, Submarines and Group 
West are requested to take the necessary measures (see Telegram 
I63D 

b. The measures stipulated by the Naval Staff in agree- 
ment with Group West and the Commanding Admiral, Submarines for 
protecting in and outbound blockade-runners are for the first 

time being applied for the departure of the UCKFRMARK, In and 
outbound submarines are ordered to keep track of the route of the 
blockade-runner in order to be ready to render immediate aid if 
necessary. 



c 



-94- 



CONFIDENTIAL 
9 Aug. 19)4.2 

VI. Aerial Warfare 

1. British Isles and Vicinity : 

During the day, fighter -bomber attacks were made on the 
coastal area of England, in addition to reconnaissance missions. 
On the night of 9 Aug. a considerable number of planes raided 
Brighton, and a few planes attacked industrial targets. 

On the night of 9 Aug. there were li|0 to 160 enemy incursions, 
80 to 100 of them into Reich territory, concentrating on Osnabrueck. 
5 planes were shot down. For an account of the considerable damage 
see daily situation report. On the evening of 9 Aug. enemy planes 
attacked the Duesseldorf area without causing any particular damage. 

2. Mediterranean Theater : 

A major attack was carried out on enemy strongpoints 
in the ^attara Depression. At the central sector of the front the 
Panzer Army was relieved by fighter -bomber raids on enemy motor 
vehicle concentrations. Free-lance fighter patrols, reconnaissance, 
and harbor defense missions failed to yield results. Fighter thrusts 
against Malta were also unsuccessful. For reconnaissance results 
from the eastern Mediterranean see Enemy Situation, Mediterranean. 

3» Eastern Front : 

The Black Sea and Sea of Azov harbors were thoroughly 
reconnoitered. , During the air raid on Tuapse one i|.,000 GRT steamer 
was sunk and 2 small steamers were damaged. 

In the Arctic area, bombs were dropped with observed effect on 
enemy assembly positions at the Kandalaksha sector. 



VII. Warfare in the Mediterranean and Black Sea 

1. Enemy Situation, Mediterranean : 

According to an intelligence report from Spain, lively 
westbound traffic was observed in the Strait of Gibraltar on the 
night of 8 Aug. A large vessel, either an aircraft carrier or a 
transport, is assumed to be among the ships. On the same night 
several vessels are. reported to have entered and 6 to have left 
Gibraltar. In the morning, the number of ships in the harbor 
was approximately the same as before. In the afternoon 3 destroyers 
arrived from the west. An Italian source reports that on the 
night of 9 Aug. some 2I4. vessels, with their lights dimmed, entered 
the Strait of Gibraltar from the west. 

The number of ships in Valletta was unchanged. Photographs of 
harbors in the eastern Mediterranean also failed to show anything 
unusual. A few merchant vessels were observed moving through 
the Suez Canal. 

1 cruiser of the SOUTHAMPTON class, 5 destroyers, 1 repair ship, 
1 passenger steamer, 32 steamers, and Ij. tankers were sighted in 

-95- 



CONFIDENTIAL 
9 Aug. 19U2 

the Suez roadstead. Air reconnaissance observed lively submarine 
activity in the whole Mediterranean area. 

2. , Own Situation, Mediterranean ; 

1 

During the night of 7 Aug. enemy planes raided Tobruk 
and*Karsa Matruh without causing any damage. During the night 
of 8 Aug. aerial mines were dropped in Marsa Matruh. 2 undamaged 
mines of an unknown type were recovered. Since the mines might 
be equipped with combined magnetic and acoustic firing devices, 
it was requested that an expert be sent to examine them. The 
Mine-Laying Experimental Command will take the necessary steps. 

On 7 and 8 Aug. submarines unsuccessfully attacked the steamer 

ISTRIA with torpedoes in a convoy en route from Benghazi to 

Navarino, and the unescorted steamer AMBA ALAGI off the Canary 

Islands. In the night of 8 Aug. one of the submarines fired on 

a coastal railway in the Canary Islands. Italian subchasers 

have been sent into action. During the enemy air raid. on Benghazi 

on 9 Aug. the steamers GIULIANA and OSTIA, as well as the quay, * 

suffered damage. 1 

3. Transport of Supplies to North Africa ; 

Transport operations proceeded as planned without any 
incidents. 

I|. # Area Naval Group South ; 

Aegean Sea ; 

1 submarine was observed east of Naxos and another 
one north of Crete. 'Submarine chase, which so far has been 
unsuccessful, is being continued. 

The ban on Spanish and Turkish shipping was lifted for escorted 
convoys effective immediately and for ships not carrying troops 
effective 11 Aug. The ban in the Aegean Sea continues in force 
for troop transports and unescorted small vessels. 

Black Sea ; 

Enemy Situation ; 

Reconnaissance of harbors in the Black Sea and the Sea 
of Azov, as well as in the Caspian Sea and on the Volga River, 
failed to yield results. I4J4. lighters, 8 tugs, and 12 paddle steamers, 
as well as 2 ferries, were spotted in Stalingrad. A southbound 
convoy was observed north of Tuapse. 

Own Situation ; 

The 1st PT Boat Flotilla operating some 15 miles 
southeast of Tuapse during the night of 8 Aug. failed to sight 
any suitable targets. Only patrol vessel and subchaser operations 
were observed. On its way back, the flotilla dropped depth charges 
against a submarine some 60 miles south of the Kerch Strait with- 
out being able to observe the effect. Motor mine sweepers have 
checked the outward route from Ivanbaba. The last 3 landing craft 



-96- 



CONFIDENTIAL 
9 Aug. loi+2 

are to be escorted through the Kerch Strait into the Sea of Azov 
by 3 motor mine sweepers with air support in the night of 9 Aug. 
An Italian subchaser group will be stationed south of Cape Opuk 
for protection. On the same night, 1 force of 2 PT boats is 
being sent into action against Russian ship movements- along the 
Caucasian coast off Novorossisk and another one against vessels 
off Tuapse. On 8 Aug. the Admiral, Black Sea transferred his 
headquarters from Kerch back to lvanbaba. Mine-sweeping and - 
convoy operations proceeded according to plan without incidents. 



VIII. Situation East Asia 

The Japanese Naval Attache reports that' on 7 Aug. the Japanese 
fleet again attacked the Anglo-American fleet in the Solomon Islands 
area. 

The following ships were sunk : 

1 battleship (class unknown) 

2 heavy cruisers (ASTORIA class) 

2 heavy cruisers (AUSTRALIA class) 
more than 3 light cruisers 

more than 4 destroyers 
more than 10 transports. 

The following ships were damaged ; 

3 heavy cruisers (MINNEAPOLIS class) 
more than 2 destroyers 

more than 1 transport. 

The Air Force shot down ; 

more than 32 enemy fighters 
more than 9 fighter-bombers. 

Japanese losses ; 

7 planes destroyed 

2 cruisers damaged (still maneuverable) . 

No further news has been received since. The German Admiral 
in Tokyo has not yet reported on this battle. 

Enemy reports on the engagement are not yet available. The 
Communication from the Japanese Naval Attache was transmitted 
to the Naval Representative of the Armed Forces High Command 
Operations Staff and to the Naval Liaison Officer with the Army 
High Command. 



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CONFIDENTIAL 
9 Aug. I9I4.2 

IX. Army Situation 

1. Russian Front ; 

Army Group A ; 

After a brief fight, Rumanian troops occupied Yeisk.' 
After crossing the enemy's anti-tank ditch, our troops took the 
western part of the city of Krasnodar! Other Army forces pene- 
trated into the town from the east ana the north, and towrrd noon 
the town was in our possession. In the afternoon, the 13th Panzer 
Division launched an attack on i.iaikop and penetrated into the 
city during the evening. South of Maikop other troops are advancing 
westward toward the Byelaya River. Parts of a panzer division 
pushing southeast have reached the area north of Essentuki. Our 
forces crossed the undamaged bridge north of Pyatigorsk. The 
Kuma River has been reached. The divisions advancing from Salsk 
in easterly direction reached Klayevka and Kopanski . 

Army Group B ; 

1 

On the southern Wing of the Army Group, parts of a 
division are engaged in a fight against weak enemy forces near 
Sirotski on the Sal River. South of Stalingrad, new forces 
brought up by the enemy are putting up a stiff defense against 
the German and Rumanian units advancing from the south. Desperate 
attempts by the enemy to break out of the pocket west of Kalach 
were repulsed. The situation at the Italian division has been 
restored through intervention of tfre 22nd Panzer Division. East 
of Svoboda, the Russians succeeded in reaching the western bank 
of the Don River and pushing back the Hungarian forces. Enemy 
pressure north of Voronezh continues. 

Central Army Group ; 

All attacks by constantly reinforced enemy troops aiming 
at an extension of the point of penetration near Rzhev were re- 
pulsed. Enemy attacks north of Rzhev and southwest of Byeloi were 
likewise repulsed. 

Northern Army Group : 

Enemy attacks on the land bridge from the north and the 
south were beaten off. Brisk combat activity is reported south 
of Soltsy. 

2. Finnish Front r 

An enemy attack north of Leningrad was repulsed. In 
the Ukhta area, forest fires caused by our incendiary shells 
destroyed enemy positions and minefields. On the northeastern 
front, an enemy attack north of Alakurtti was repulsed, 

3. ^ ; orth Africa : 

Some patrol, artillery, and plane activity is reported. 



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CONFIDENTIAL 
10 Aug. 1942 

Items of, Political Importance 

The Allied conferences in Moscow are being widely discussed. Authentic 
reports, however, are not available. The U.S. Ambassador in Ankara has* 
denied the reports about his trip to Moscow. 

Great Britain ; 

Labour Minister Bevin has called upon workers in the building industry 
to erect huge camps and depots for the American ground and air forces, 
airfields, and harbor installations. This project is to have priority 
over all public and municipal projects. 

The Irish Times estimates the tonnage needed for an invasion of the Con- 
tinent at 2,000,000 tons which, however, are not available for this pur- 
pose. The greatest problem is that of air superiority. Sooner or later, 
a second front will be established. 

Noted British and American newspapers deplore the lack of a unified 
high command for the' West, which results in a lack of the necessary co- 
ordination both in armament and strategy. 

Concerning the shipping problem , the Dally Mirror states that the Allies 
share Admiral Pricke's opinion that the battle on the seven seas will 
be the most decisive one of the war; the Allies are unfortunately not 
acting accordingly. To counter German submarines only by building new 
ships is the equivalent of providing the submarines with "sure prey". 
A special article by Crumley in the Dally Express takes a very serious 
view of the shipping crisis. The Allied tonnage deficit already amounts 
to 12,000,000 tons. Any hopes for eliminating the submarine menace are 
generally considered madness. 

These pessimistic statements must be taken with a grain 
of salt. They consciously serve the purpose of mobiliz- 
ing all forces for defense. Undoubtedly, the authorit- 
ative Allied circles have never ceased to believe that 
danger arising from the critical shipping situation can 
be overcome. 

India ; 

The leader of the Moslems Issued a declaration condemning the Congress 
resolution and called upon his followers to stay out of any mass move- 
ment. 

The domestic situation in India as such is not necessarily 
confronting the British with an insoluble problem, seeing 
that they have sufficient military and political forces 
at their disposal to retain control of the situation. 
Only the incalculable consequences which would follow 
active intervention by Japan make the present develop- 
ments appear more critical than ever before. 

Turkey ; 

A French source reports that the Turco-Syrian frontier, which was closed 
on 7 Aug., has been reopened. 

A report from a Bulgarian source states that the British and U.S. Am- 
bassadors in Ankara have undertaken certain steps with the Turkish Govern- 
ment with regard to the Russian fleet in the Black Sea. 



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CONFIDENTIAL 
10 Aug. 1942 



Uruguay ; 

The Urugi 
test aga: 
retaliatory measures, 



The Uruguayan Government has lodged with the German Government a pro- 
test against the sinking of the steamer MALDONADO and has announced 



Conference on the Situation with the Chief, Naval Staff 

I. The Italian Admiral at the Naval Staff communicates that in case 
of an alarm the Italians intend to lay mines with timing device set 
for 48 hours in the French territorial waters off Cape Bon. The Naval 
Staff welcomes this intention but will suggest to the Italian Admiralty 
that the mines be set for a longer period than 48 hours. 

II. The African Panzer Army has been placed directly under the Italian 
High Command. Thus it is no longer, as heretofore, under the Italian 
Commander in Chief of the African Forces, General Bastico, who has been 
promoted to the rank of Marshal of Italy. 

III. The Naval Liaison Officer to the Air Force Operations Staff re- 
ports as follows: 

1. The regulation according to which plane crews are to be 
awarded bonuses payable after the war for sinking large warships is 
still in force. 

2. All airfields situated near the coast in the west area are 
to be developed as bases. 

3. Daylight raids on the Reich area are made from very high 
altitudes (6,000 to .10,000 meters). At such altitudes, planes can be 
located practically only by instruments, seldom by sound, and never by 
sight. 

The Air Force Operations Staff believes that the heavy air raids 
carried out by the enemy at night and the nuisance raids made during 
the daytime are tying up his forces to a very large extent. The fact 
that heavy raids are being made on the Reich area lead, therefore, to 
the conclusion that simultaneous landing operations are not intended. 

15 of the 60 German bombers which flew over Birmingham on the night 
of 29 Jul. were lost. The crews withdrawn from the East are not yet 
adequately trained for attacks on the interior of England. The air 
raids on Birmingham have so far resulted in the loss of an entire 
bomber group. 

4. On 4 Aug., effective immediately, the 2nd Group of the 26th 
Bomber Wing (torpedo planes) was transferred from western France to 
the area of northern Norway for an attack on convoy PQ 18. The Air 
Force Operations Staff presumes that in case of poor visibility the 
British will use parts of their bomber formations for dropping aerial 
mines. 

IV. The Italian Admiral at the Naval Staff requested authoriza- 
tion for his inspection tour of the Norwegian bases and defense in- 
stallations. The Naval Staff has set up a schedule for a 9 day tour 
beginning on 21 Aug. It is planned to make available a warship for 
the voyage from Trondheim to Narvik. The Chief, Naval Staff agrees. 

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CONFIDENTIAL 



10 Aug. 1942 



V. The Chief, Naval Staff Communications Division reports on anti- 
radar devices to be used on submarines and PT boats operating in the 
Channel. The Chief, Naval Staff Quartermaster Division will demon- 
strate these devices, as well as the radar decoy balloons, to the 
Fuehrer some time soon. 

VI. The Chief, Naval Intelligence Division reports on rumors con- 
cerning the Russian Black Sea Fleet, which are suddently appearing. 
His advice is to distrust the rumors to the effect that the Russian 
fleet is giving up. 

In a Very Restricted Circle t 

VII. Report by the Chief, Operations Branch, Naval Staff Operations 
Division: 

1. Fog in the Arctic Ocean has so far prevented our forces 
from reestablishing contact with convoy FQ 18. The data reported by 
submarine U "405" cannot be doubted. Group North considers it un- 
likely that convoy PQ 18 has already passed through the longitude of 
Spitsbergen. Both the Naval Staff and Group North consider It un- 
likely that the submarine might have sighted a decoy convoy. Most 
probably the convoy was badly 'delayed by the fog. Group North con- 
siders it very likely that the convoy will pass through the HInlopen 
Strait and the Olga Strait. The Group asked the 5th Air Force to 
carry out the necessary reconnaissance and patrol operations. The 
Increased number of radio messages exchanged between Archangel and 
Murmansk may indicate the departure of the QP convoy. 

Following up a telephone conversation between the Chief of Staff, Na- 
val Staff and the Commanding Admiral, Group North, the latter asked 
that the following operation undrr the command of the Admiral, Arctic 
Ocean,, be considered, in case convoy PQ 18 is located east of Bear 
Island within the range of our destroyers, and no definite informa- 
tion about the positions of its heavy escort forces is available: 

a. The HIPPER and the SCHEER, together with approximately 5 
destroyers, would make a thrust through the North Cape area in north- 
easterly to easterly direction. 

b. The SCHEER would then be dispatched around in back of the 
convoy for operation "Wunderland". 

c. The HIPPER, together with the destroyers, would search for 
convoy PQ 18 and attack it in the right half of large quadrant AC, 
avoiding any serious engagement if possible. The ships would then 
return to northern Norway. The TIRPITZ, the KOELN, and 2 destroyers 
would remain In Narvik ready for action. 

2. Re: Operation by the SCHEER in the Kara Sea. 

On the basis of the evaluation of the Russian direction- 
finding service in the Kara Sea, Group North directed the Admiral, 
Arctic Ocean on 2 Aug. to start the first part of the operation in 
the eastern Barents Sea and in the Kara Sea 'as soon as possible. The 
second part is scheduled to be executed after the operation against 
convoy PQ 18. The code name for the SCHEER mission is "Wunderland". 
On 7 Aug. Group North communicated to the Admiral, Arctic Ocean the 
information from the Naval Staff about the Russian convoy from 
Petropavlovsk which is expected to arrive in the Kara Sea toward the 



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CONFIDENTIAL 
10 Aug. 1942 

middle of August. The date for operation "Wunderland" depends on 
the operation against convoy PQ 18 and on the enemy situation in 
general. Efforts should be made to execute the operation at a time 
when the traffic on the northern route and in the Kara Sea is 
assumed to be at its heaviest. For this reason, if operation 
"Eispalast" is carried out provision should be made for sending the 
SCHEER directly from the operations area. If operation "Eispalast" 
is not carried out, it is planned to send the SCHEER as soon as this 
becomes evident and a clear picture of the enemy forces is available. 
The special steam trawlers will not participate in the operation. 
The Admiral, Arctic Ocean is to return them at once to the Command- 
ing Admiral, Norway. Instead, submarines are to be stationed at the 
western outlet of the Matochkln Shar and the Kara Strait, if neces- 
sary also the Yugor Strait and the northern tip of Novaya Zemlya by 
15 Aug., if the situation with regard to convoy PQ 18 is such that 
the necessary submarines can be spared. 

The SCHEER' s main task is to attack enemy ships in the Kara Sea. If 
necessary, the cruiser should withdraw to the west and to the 
northern route until worthwhile attack targets have been reported. 
The entire operation is to take 10 to 12 days. Unless some worth- 
while target appears, the attacks are to be directed against ships 
moving through the northern route and the Yugor Strait toward the 
harbors of eastern and northern Siberia. These attacks should in- 
clude destruction of the harbor installations in Amderma by gunfire 
and annihilation of any fishing flotillas met en route. The captain 
of the cruiser is free to extend the operation as far as the Yenisei 
estuary. 

The moment the enemy notices the SCHEER, the operation should be 
stopped and the SCHEER should turn back at top speed. The restric- 
tions included in the orders for operation "Roesselsprung" apply also 
to the operation by the SCHEER. The operational command rests with 
the Admiral, Arctic Ocean, the tactical command with the captain of 
the SCHEER. Operation "Wunderland" is to be started after consulta- 
tion with Group North. The same applies to air reconnaissance and 
patrol. The Admiral, Arctic Ocean will take care of the fighter 
protection and close escort on the way to and from the operations 
area. Group North has requested the 5th Air Force to comply with the 
requests of the Admiral, Arctic Ocean to the greatest possible ex- 
tent. 

3. A further report by the Chief, Operations Branch, Naval 
Staff Operations Division deals with plans for a submarine opera- 
tion off Capetown as recorded in War Diary 7 Aug. 

The Chief, Naval Staff expresses his agreement and orders that the 
necessity to observe complete radio silence be explicitly mentioned. 

4. For the report by the Chief, Operations Branch, Naval 
Staff Operations Division concerning the rendezvous of the auxiliary 
cruisers n 23" and "28" see War Diary 8 and 9 Aug. 

The Chief, Naval Staff agrees with the Naval Staff's proposal to 
award decorations to the prize crews of the auxiliary cruisers as 
mentioned in Radiogram 1954 to ship "10". 



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CONFIDENTIAL 
10 Aug. 1942 

VIII. Palling to recognize the actual conditions, the command of the 
African Panzer Army informed the Armed Forces High Command Operations 
Staff that the daily unloading rate in Tobruk is insufficient, imply- 
ing that the Navy is to be blamed for this situation. As suggested 
by-th» Naval Representative on the Armed Forces High Command Opera- 
tions Staff, the Operations Staff rejected the accusation as unjusti- 
fied. Actually, the tonnage unloaded in Tobruk exceeds all figures 
ever reached before, and this fact is due entirely to the energetic 
intervention of the German Naval Command, Italy. 

IX. Commander Junge made a detailed report on his official trip to 
the Black Sea area which he had undertaken on orders from the Armed 
Forces High Command Operations Staff. He describes* in particular, 
the unsatisfactory conditions in the Nikolayev shipyard which call 
for immediate relief. The present production of this shipyard is 
absolutely inadequate, due to lack of proper organization and person- 
nel. The effect will make itself felt very keenly once the shortage 
of tonnage in the Black Sea becomes manifest, and the Navy alone will 
be blamed. . • 

In this connection, the Chief, Naval Construction Division reports 
that because of this risk for the Navy, which he too anticipates, a 
binding agreement was concluded with the Reich Commissioner of Mari- 
time Shipping and ;with Staatsrat Blohm just 2 days ago, to the 
effect that the management of the shipyard is to be transferred to 
the Hermann Goering Werke, which will send a new director there. 
Since this measure does not suffice to make clear where the respon- 
sibility actually lies, the Commander in Chief, Navy orders, in addi- 
tion, that the Navy completely withdraw from the management of the 
shipyard; at the same time guarantees must be provided that the * 
orders which the Navy places there are filled. In spite of the exist' 
ing contract which safeguards the Navy's property rights, the Chief, 
Naval Construction Division suggests that the shipyard control staff 
be dissolved and a group of energetic inspectors be considered suf- 
ficient. In any case construction and repair work for the Navy in 
progress at the present time (6 war transports, 3 subchasers, and 
the remaining vessels of the landing craft construction program) will 
be completed. Emphasizing the responsibility which the Navy still 
bears for supplying the war transports, the Commander in Chief, Navy 
gives his approval to the above proposal. 

Unfortunately, the other alternative for overcoming the existing 
difficulties, namely a thorough sifting of the personnel, which for 
obvious reasons would be preferable to the Navy, is impracticable 
because of the deplorable shortage of qualified personnel. 

In order to have this problem, as well as the related questions dis- 
cussed by Commander Junge, settled on the spot, the Commander in 
Chief, Navy orders that the Chief of the Shipyard Branch, Naval Con- 
struction Division, Rear Admiral Kleikamp, be sent immediately to 
Novorossisk and the Crimea. 



Special Items : 

I. On 10 Aug. the Commander in Chief, Navy approved Group North's 
request for placing the Admiral, Arctic Ocean under its command 
effective immediately, 

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CONFIDENTIAL 
10 Aug. 1942 

The Chief, Naval Staff Quartermaster Division approves the draft of 
the necessary instructions for the Admiral, Arctic Ocean as sub- 
mitted by Group North. 

II. In connection with the reexamination of the problems of poison 
gas defenses undertaken on orders from the Naval Staff Quartermaster 
Division (see War Diary 27 Jul.), the Inspector of Naval Ordnance 
suggests that an inspectorate for chemical warfare be established 
within the Navy, which would at the same time be in charge of all 
problems in the fields of smoke screens, camouflage, and fire fight- 
ing. 

III. According to the communication received from the Naval Liaison 
Officer to the Array General Staff, the Naval Staff's request for in- 
vestigation of the chances against light Russian naval forces in the 
Gulf of Finland (War Diary 17 Jul.) has been transmitted to the 
Northern Army Group for reply. In its reply of 4 Jul. to an inquiry 
by the Naval Liaison Officer to the Army General Staff, the Northern 
Army Group had already given the insufficient number of guns, in- 
sufficient ammunition allotments, lack of ground and air reconnais- 
sance, and ice conditions which prevented hits under water as reasons 
for the unsatisfactory results of artillery attacks on Russian na- 
val forces in Kronstadt and Leningrad. It added that the results 
obtained by the Air Force in its attacks on these ships were no 
better than those scored by the artillery. It also mentioned that 
during the winter the artillery did not receive orders to destroy 
the enemy fleet, in order to spare naval installations; rather, em- 
phasis was placed on destroying essential industrial installations. 
The Artillery General with the Commander in Chief, Army believes 
that the Russian naval forces in the area mentioned can only be at- 
tacked if the Navy provides 500 rounds of 28 cm, armor-piercing 
shells • 

The Navy had given up the request to spare naval in- 
stallations as early as September 1941, but certain- 
ly no later than 18 Jan. 1942 (see War Diary 18 Jan. 
1942). 

TV. According to a communication from the Army General Staff, the 
Japanese General Staff offered through the Military Attache in Tokyo 
on 5 Aug. to send a general staff officer and- a technical officer with 
special experience in landing operations by air to Germany, if so de- 
sired. 

The Japanese General Staff confirmed to the German Military Attache 
for the first time that the Japanese units in Manchukuo are in fact 
being considerably reinforced and that the present peaceful rela- 
tions with the Soviet Union are not expected to last much longer. The 
best time for a Japanese surprise attack would probably be around 
the end of August or the beginning of September. 

V. An intelligence report from London states that due to the 
shortage of tonnage the second front cannot be established at present 
or in the near future. The Swiss News Agency claims to have learned 
from London that the Axis powers and Japan sank 321 Allied ships 
totalling 1,846,900 GRT during June 1942. 

The Swiss Legation in London has been informed that the large-scale 
air attacks on Germany must now be restricted since the gasoline which 
is ready for shipment in America cannot be brought up because of 

-104- 



CONFIDENTIAL 
10 Aug. 1942 

tanker shortage. Great anxiety is caused by the threat of German 
submarine warfare. According to reports from Germany, the attempt 
to destroy the shipyards building submarines in Germany has so far 
proved unsuccessful. It will be difficult to do this also in the 
future, since the German submarine bases are too well camouflaged, 

VI. In view of the Army preparations for operation "Nordlicht", 
Group North expects that the Russian Baltic Sea fleet will try to 
break out and requests for this reason that in case the situation 
calls for such a measure, the 6th PT Boat Flotilla be temporarily 
assigned to the Commander, Mine Sweepers, Baltic Sea after engine 
overhaul and firing practice. Group North furthermore requests 
that the mine reserves be replenished so that tactical minefields 
can be laid, at once. 

Basically the Naval Staff wants the 6th PT Boat Flotilla to operate 
in the west area. It reserves a decision about a temporary assign- 
ment of the flotilla to the Baltic Sea, if the situation so re- 
quires, until the vessels are again ready for action after comple- 
tion of engine overhaul and torpedo firing practice. 

As for replenishing the mine reserve supplies, the Naval Staff will 
Issue the necessary directives. < 

VII. Should the TIRPITZ and the HIPPER be unable to enter the ship- 
yard simultaneously for the period from November till January, the 
Naval Staff agrees, as suggested by the Fleet Command, to have the 
TIRPITZ enter the shipyard first toward the end of October and the 
HIPPER subsequently. The Naval Staff Quartermaster Division is 
directed to fix the date on which the TIRPITZ should enter the ship- 
yard independent of the transfer of the SCTTARNHORST. The Naval 
Staff is willing to risk having no battleship in Norway temporarily 
in autumn in case the transfer of the SCHARNHORST is delayed, if 
thereby it is possible to complete the TIRPITZ by the middle of 
March 1943 so that she can be transferred to Norway while the nights 
are still long. Starting early in September preparations are to be 
made for a 6 weeks engine overhaul of- the SCHEER. 

For copies of the Fleet Command's proposal to this effect and of the 
directive of the Naval Staff Operations Division see l/Skl I op 
19335/42 Gkdos. in War Diary. Part B, Vol. V. 



Situation 10 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation ! 

No reports of interest have been received. 

2, Own Situation ; 

Ship "10" is being informed that the prize crews of the 
HERBORG and the NANKIN began their return voyage with the TANNENFELS 
on 8 Aug. Each prize crew is being awarded one Iron Cross, First 
Class, and 70 to 100^ of their members will receive the Iron Cross, 
Second Class. The captain of the auxiliary cruiser is to distribute 

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CONFIDENT IAL 

i 

10 Aug. 1942 

the decorations. For details see Radiogram 1954. 

The German Naval Command, Italy reported that the Italian tankers 
ARCOLA and TAIGETE were at 6° 41' N, 26° 59' W on 8 Aug. at noon. 
The Commanding Admiral, Submarines has been informed accordingly. 



II. Situation West Area 

1. Enemy Situation : 

No reports of special Interest have been received. 

2. Own Situation : 

Atlantic Coast : 

3 ground mines were swept in the Gironde estuary. 1 mine 
exploded by itself. 

The supply ship UCKERMARK departed from La Pallice on 9 Aug. at 2200 
as scheduled, and the escorting vessels left her on 10 Aug. at 0500. 
At 1940 the ship reported that she is returning to Bordeaux. Group 
West has ordered torpedo boats to bring her in. Since no indications 
can be obtained from radio intelligence or air reconnaissance, the , 
reason why the ship turned back remains obscure. The Group assumes 
engin e tr oub le . 

Channel Coast : 

Nothing to report. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Air reconnaissance failed to yield any results. 

Own Situation : 

5 ground mines were swept on convoy routes north of the 
Frisian Islands. Convoy operations proceeded according to plan. 
Bad weather restricted mine-sweeping operations. Barrage n SW 102" 
could not be laid because of unfavorable weather. 

Special Item : 

The Post Minister has expressed to the Armed Forces High 
Command Operations Staff his special recognition for the manner in 
which the cable between Arndal and Newbiggin was cut on 3 Jul. The 



-106- 



CONFIDENTIAL 



10 Aug. 1942 



performance of mine sweeper "1303" was excellent. Evidently, the 
cable was cut in order to break off an illegal communication line 
between Norway and England. The Post Minister believes that for 
technical reasons it is impossible that there could be a branch 
line .west of the spot where the cable was cut. 

2. Norway, Arctic Ocean : 

Enemy Situation : 

Reconnaissance searching for convoy PQ. 18 was unsuccessful, 
Air reconnaissance reports that the Olga Strait is no longer navig- 
able between 19° and 25° E. 

O wn Situation : 

On 8 Aug. the Russian battery on the Rybachi Peninsula un- 
successfully fired on 2 landing craft en route from Petsamo to 
Kirkenes. On 9 Aug. enemy planes raided a convoy at the latitude of 
the Ko Fjord and patrol vessels off Svaerholthavet. Patrol vessel 
"6163'* was damaged by an aerial torpedo but was towed into Honnings- 
vaag. In the northern and western coast areas, enemy planes were re- 
ported flying daylight missions over the areas of Trondhelm and 
Stavanger on 9 Aug. 

The transfer of the LUETZOVV has started as scheduled. According to 
the directive of Group North, the radio communication intercept de- 
tachment of the LUETZOW will be embarked on the mine layer ULM, be- 
ginning 13 Aug., to participate in the operation in the Novaya 
Zemlya area. « 

No incidents I were reported by the Admiral, Arctic Ocean. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation : 

No incidents occurred in the area of the Commanding Ad- 
miral, Defenses, Baltic Sea. 

On 9 Aug. the minefields "Seeigel XXIV" and "Seelgel XXV" were laid 
in the Gulf of Finland according to plan. A 300 m. wide channel has 
been swept in UMB minefield "Nashorn 12". Convoy operations pro- 
ceeded as planned. 

The Army High Command urgently requested the Commanding Admiral, 
Baltic Countries to release Army Coastal Artillery 929 and Battery 
515, since only very few guns are available for operation "Nord- 
licht t \ 

The Naval Staff Quartermaster Division will attend to the matter. 



-107- 



CONFIDENTIAL 
10 Aug. 1942 

V. Submarine Warfare 

1. Enemy Situation ; 

Reconnaissance activity over the entire Bay of Biscay was 
very lively. 3 submarine sighting reports were intercepted. A 
British vessel was located 320 miles west of Brest. 

2. Own Situation : 

Submarine U "255" reported from the Arctic Ocean that she 
has taken up her patrol position at the entrance to the Hinlopen 
Strait as ordered. In general, the Naval Staff considers it in- 
advisable to send such reports. 

In the North Atlantic, contact with the eastbound convoy was re- 
established at 0630 and was maintained, with some interruptions, 
throughout the day. A number of successes were reported, which are 
particularly gratifying in view of the fact that our submarines are 
almost exclusively manned by new commanders. Submarine U "704" re- 
ported that she has torpedoed a steamer of the ORMONDE class 
(14,982 GRT). Submarine U "597" reported 3 hits on two 8,000 GRT 
steamers in the central column of the convoy. Submarine U "438" re- 
ports hitting a 5,000 GRT steamer end probably sinking a 6,000 GRT 
steamer which was not moving. Submarine U "660" reports that she 
torpedoed 4 steamers but was driven off and could not observe their 
sinking. The Commanding Admiral, Submarines has ordered the opera- 
tion to be continued. 

No successes were reported from the American coast. 

In the West Indies area submarine U "108" sank the Norwegian steamer 
BRENAS (2,687 GRT) in quadrant EO 2276 and took the captain aboard. 
Submarine U "510" sank a 14,000 GRT tanker in quadrant ED 3927. 

Of the submarine group operating in the South Atlantic, submarine 
U "752" reports that in quadrant ET 3383 she sank the former German 
steamer KASSEL proceeding under the Dutch flag with a cargo of 
planes and locomotives from New York to Alexandria. A U.S. cruiser 
and destroyers had stopped the steamer in quadrant ET 4570. 

For further reports see .supplement to the submarine situation in War 
Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

On the night of 10 Aug. a few of our planes operated over 
Colchester and Hastings. On the night of 9 Aug. our planes raided 
Brighton, Liverpool, Manchester, and Newcastle. 

Of the 20 enemy incursions during the night of 10 Aug., 15 were over 
the Reich territory. No bombs were dropped. The attacks were con- 
centrated on the Baltic Sea entrances and Kiel Bay. It is presumed 
that mines were dropped. 

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CONFIDENTIAL 
10 Aug. 1942 

2. Mediterranean Theater ; 

For reconnaissance results see Enemy Situation, Medi- 
terranean. 

Fighters and bombers attacked airfields on Malta. In Africa, the 
number of fighters operating in the area of the Africa Corps was 
increased. 

3. Eastern Front ; 

Reconnaissance planes were active over the Volga River, 
the Caspian Sea, and the Arctic Ocean. Otherwise there was noth^ 
ing to report. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

According to an intelligence report from Ceuta, on the 
night of 9 Aug. a convoy of 37 vessels, among them 1 aircraft 
carrier, 3 cruisers, 10 destroyers, 3 gunboats, and 19 freighter's, 
passed through the Strait of Gibraltar in easterly direction. On 
the morning of 10 Aug. the ARGUS with 4 destroyers entered Gibral- 
tar from the west. At 1400 the ARGUS was still located in Gibral- 
tar. Fog prevented any further observations. Around 1900, air 
reconnaissance spotted an eastbound convoy composed of 2 battle- 
ships, 2 aircraft carriers, 2 cruisers, 14 destroyers, and 12 
steamers 55 miles north-northeast of Oran. Evidently this is the 
same convoy that was sighted from Ceuta the night before. The size 
of this eastbound convoy makes it appear doubtful that it involves 
merely a supply operation, possibly including plane shipments for 
Malta. . It may be that this is the convoy which, according to an in- 
telligence report, was composed of 37 ships carrying 25,000 men for 
Egypt and departed from Portrush for Gibraltar on 25 Jul., to pro- 
ceed from there through the Mediterranean. (See War Diary 28 Jul. ) 

If the report is correct, it would offer an affirm- 
ative answer to the Naval Staff's question as to 
whether the British would actually dare to let such 
a valuable convoy cross the whole length of the Medi- 
terranean. 

In the central Mediterranean, air reconnaissance spotted lively sub- 
marine activity. 4 submarines were reported sighted. Radio intelli- 
gence observed westbound convoy movements in the eastern Mediter- 
ranean. 

2. Own Situation, Mediterranean ; 

On 7 Aug. the Admiral, German Naval Command, Italy left 
with the Commanding General, Armed Forces, South by plane for 
Africa where he will presumably stay 3 days for conferences with the 
Panzer Army and the Italian command posts. 



-109- 



CONFIDENTIAL 
10 Aug. 1942 

On 11 Aug. the North African Operations Headquarters of the Ger- 
man Naval Command, Italy will be transferred to Tobruk for the 
purpose of better control of coastal shipping and better liaison 
with the Italian Navy. (See Telegram 0230. ) 

On 9 Aug. an Italian landing craft sank in the roadstead of Tobruk 
as a result of a mine explosion. \ 

In the night of 8 Aug. 50 aerial mines (not 5 as previously re- 
ported) were dropped in Marsa Matruh. The Nava^ Staff has re- 
quested the German Naval Command, Italy to report immediately on 
the firing devices with which the mines found in that area are 
equipped. The chances to have the mines swept by mine-sweeping 
planes appear at present limited and depend on the results of the 
investigation of the firing devices. (See Telegram 1717.) 

On 19 May the Naval Staff had asked the German Naval Command, Italy 
to clarify the following points: 

a. Is it certain that the Italians will provide their share 
of the mines in time to ensure laying of the east-west wall in the 
Aegean Sea? 

The Naval Staff considers this to be a prerequisite for our supply- 
ing the requested additional 1,200 UMA mines. 

b. The German Naval Command, Italy is requested to confirm 
that in its opinion laying of the east-west wall in the Aegean Sea 
will not affect unfavorably the mine operations in the Strait of 
Sicily, off Malta, off Benghazi, and farther to the east, which 
the Naval Staff considers more urgent. 

In the meantime, the Naval Staff has granted the request of Group 
South that the UMA and EMC mines which are available in the Aegean 
area for submarine warfare be used for the first rows of the mine- 
fields between the islands. The Italian mines will then be used 
to reinforce and deepen the minefields. 

On 14 Jul. the German Naval Command, Italy, after repeated requests, 
finally transmitted the views of the Italian Admiralty presenting 
an over-all plan for the use of Italian mines. This plan provides 
that, except for the mines and nets which are to be laid in the 
Strait of Sicily, all other mines and nets will gradually be made 
ready for use in the planned mine operation in the northern Aegean, 
and will be placed at the disposal of the Admiral, Aegean Sea, who 
has command of the operation. 

On 28 Jul. the Naval Staff, being particularly anxious to make sure 
that the operation in the Strait of Sicily is not unfavorably af- 
fected, asked the German Naval Command, Italy to state its views on 
this question once more. On 6 Aug. the German Naval Command, Italy 
replied that neither the mines used in the Aegean Sea nor the with- 
drawal of minelaying vessels for operations in that area will jeop- 
ardize the operation in the Strait of Sicily. On 8 Aug. the German 
Naval Command, Italy stated in a supplementary report that the 
Italian Admiralty repeatedly gave the lack of fuel as the reason for 
not laying minefields already planned, e.g., off Tobruk and Benghazi. 
So far, it has not been possible to gain a definite promise from the 
Italia is that the operation in the Strait of Sicily will be carried 
out promptly. The German Naval Command, Italy is continuing its 

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CONFIDENTIAL 



10 Aug. 1942 



*o 



efforts in this direction. 

3» Transport of Supplies to North Africa : 

Transport of supplies from Italy and Greece to North 
Africa and along the North African coast proceeded according to 
plan .without incidents. 

According to a list compiled by the Naval Staff Quartermaster 
Division, Shipping and Transport Branch, out of the total of 45 
German ships (166,957 GRT) engaged In the transport of supplies 
to North Africa, 34 vessels totalling 138,476 GRT have been lost 
and 3 vessels totalling 4,417 GRT damaged, thus leaving only 8 
ships totalling about 24,000 GRT in sailing condition. 

4. Area Naval Group South : 

Aegean Sea : 

Submarine chase brought no success. On 6 Aug. another 
auxiliary sailing vessel, carrying 112 Greek workers for Crete, is 
said to have been sunk off the eastern coast of the Peloponnesos. 

Black Sea : 

Enemy Situation : 

Air reconnaissance observed intense loading activity in 
Tuapse. 1 tanker, 14 steamers, 8 coastal vessels, and 13 escort 
vessels were sighted in that harbor. On the evening of 8 Aug. a 
submarine was located east of Ivanbaba. It is suspected that mines 
were laid between Cape Ilich and the Ivanbaba Bay. 

Own Situation : 

In the night of 9 Aug. 3 landing craft and 3 motor mine 
sweepers passed through the Kerch Strait northward without inci- 
dent. 16 landing craft assigned to operation "Bluecher" and 4 en- 
gaged in the transport of supplies to the Sea of Azov are now in 
that area. On 11 Aug. one of these 4 barges will join the "Bluecher** 
group. 

During the torpedo operation of the 1st PT Boat Flotilla off 
Tuapse during the night of 9 Aug. PT boat S "102" sank a southeast- 
bound steamer of at least 4,000 GRT carrying ammunition and troops. 
Escorting destroyers dropped depth charges, thus assuming a sub- 
marine attack. One of the destroyers was unsuccessfully torpedoed. 
No contact was made with the enemy off Novorossisk. 

In view of the fact that 4 of the boats of the 1st PT Boat Flotilla 
are due to have their engines replaced, Group South endorses as 
urgent the request of the Admiral, Black Sea for prompt dispatch of 
PT boat engines. The matter will be attended to by the Naval Staff 
Quartermaster Division and the Naval Construction Division. 

5. Special Item : 

In his reply to the Commanding General, Armed Forces, 
South the Commanding Admiral, Group South declares that it is an 
overstatement to say that lack of air cover was the sole cause for 

-111- 



CONFIDENTIA L 
10 Aug. 1942 

the loss of the WACHTFELS, sirtce air escort can never prevent a 
submarine attack. The Commanding Admiral, Group South asks the 
Commanding General, Armed Forces, South to postpone any final 
conclusions until the results of the court-martial investigation 
are available. Group South has informed the Naval Staff and 
through it the Armed Forces High Command to this effect. (See 
Telegram 1200. ) 



VIII. Situation East Asia 

The German Admiral in Tokyo has transmitted a report of the 
Chief of the Japanese Naval Staff about the engagements in the 
Solomons. 

l a On 6 Aug. bad weather prevented air reconnaissance. On 
the morning of 7 Aug. enemy forces consisting of 9 cruisers, 11 
destroyers, and 30 transports emerged unexpectedly off Tulagi on I 

Florida Island. The appearance of enemy fighters indicated that 
at the same time a force of at least 1 aircraft carrier and 1 or 
2 auxiliary aircraft carriers was at some point beyond the range 
of Japanese reconnaissance. 

2. Enemy troops landed on Florida Island, where 300 Jap- 
anese naval troops are stationed, and on Guadalcanal, where 
there are 600 Japanese naval troops, in addition to 2000 Jap- 
anese workers engaged in building an airfield. 

3. On 7 Aug. some 25 Japanese naval land-based planes carry- 
ing bombs took off from Rabaul under strong fighter escort to at- 
tack the enemy force. Over Tulagi heavy fighting developed be- 
tween the Japanese planes and some 60 enemy carrier-based fighters, 
of which the Japanese supposedly shot down 52. Bombing was 
hampered by the aerial combat and clouds, with the result that 
only 2 destroyers were damaged by bombs. The fighters re- 
fueled at Buka Island on their return flight. 

4. On 8 Aug. Japanese planes took off from Rabaul and re- 
peatedly torpedoed enemy vessels riding at a,nchor. .. 

Result: 2 heavy cruisers, 2 light cruisers, and 9 transports sunk, 
2 heavy cruisers and 2 transports left burning. 

5. In the night of 8 Aug. the Japanese sent their naval 
forces into action, ^he forces consisted of 5 heavy and 2 light 
cruisers, and 1 destroyer. 

Result: 4 destroyers sunk, 2 cruisers set on fire. 2 Japanese 
cruisers were slightly damaged. 

6. On the morning of 9 Aug. air reconnaissance located the 
following vessels off Tulagi: 1 cruiser, 2 light cruisers or de- 
stroyers, 7 destroyers or mine sweepers, and 19 transports. Some- 
what farther away there were 6 destroyers, and 100 miles south of 
Tulagi 1 enemy battleship or heavy cruiser which was sunk by an 
aerial torpedo. 



-112- 



CONFIDENTIAL 



10 Aug. 1942 



7. Another air attack against the enemy forces still off 
Tulagi was started on the morning of 10 Aug., but meanwhile the 
enemy had disappeared. 

8. The situation on Florida Island and Guadalcanal is un- 
clear. Defensive combat is till In progress. 

9. Exchange of radio messages intercepted on 10 Aug. in- 
dicates that strong enemy forces are at sea southeast of the 
Solomon Islands. However, they remain outside the Japanese 
reconnaissance range. 

10. The actual scope of the American offensive plan is not 
clear. From the size of the force sent into action it may be 
concluded that, -in addition to the Solomon Islands, the enemy 
intends to attack the Bismarck Archipelago. 

11. The actual number of vessels sunk differs from the 
figures which were published; this difference is probably due 

to the fact that ships which v/ere at first seen burning and were 
later hit for a second time were counted twice. 

* 

12. A simultaneous attack was launched by U.S. naval forces 
consisting of 4 cruisers, 10 destroyers, and 2 more warships on 
Kiska (Aleutians) on 8 Aug. The attack was confined to a 30 
minute bombardment, after which the enemy ships turned away and 
disappeared in the fog. Evidently no landing was planned. The 
enemy lost 1 ship-borne reconnaissance plane. The dairage caused 
is slight. 

The U.S. Navy Department reports from the South Pacific that the 
offensive operations against the Japanese forces on the Solomon 
Islands are being continued. The report states that the Ameri- 
can forces met with rather strong resistance and that it is still 
too early to make known losses on either side. 

According to a report from the Military Attache in Bangkok, the 
Japanese intend to utilize their combat experience in China in 
the event of a future invasion in India by employing only small 
forces, causing confusion by quick, deep thrusts, and instigat- 
ing uprisings. The time for this action will be determined by 
military developments in the Middle East. An air offensive in 
which major forces are employed cannot be launched before Novem- 
ber. It is difficult to make a sufficient number of troop trans- 
ports available. Possession of Ceylon as a military and naval 
base is considered important. 

Enemy planes attacking Amboina allegedly damaged a Japanese 
cruiser. The Japanese have occupied the city and airfield of 
Kokoda on New Guinea. 

According to information from Japanese sources in Bangkok, the 
Japanese offensive against Australia has been postponed. It is 
planned to encircle that continent by a. gradual occupation of 
further archipelagos, and to disrupt the enemy's supply lines. 

At the present time, large-scale operations are being prepared 
to be launched from the southwestern Pacific against Ceylon, 
India, Madagascar, and South Africa, 



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CONFIDENTIAL 
10 Aug. 1942 

IX, Army Situation 

1. Russian Front t 

Army Group A ; 

Our troops advancing toward the lower Kuban River have 
reached the area of Slavyansk. Enemy groups remaining in the 
area east of Maikop are attempting to break through to the east 
and southeast. Motorized forces are pushing forward from Mosto- 
voye west toward the Byelaya River. Other troops are advancing 
on both sides of the Manych River in southeasterly direction. 

Army Group B : 

Tightening of the pocket west of Kalach continues. The 
points of penetration near Svoboda were mopped up. North of Vor- 
onezh armored enemy forces penetrated our lines. Counterattacks 
are in progress. 

Central Army Group : 

Fighting at the point of penetration near Rzhev con- 
tinues. Our troops have so far failed to close the gap. 

Northern Army Group : 

The enemy renewed his attacks on the same points as 
during the last few days without achieving any success. 

2. Finnish Front : 

No noteworthy fighting was reported. 

3. North Africa : 

So far, no report has been received. 

jHHHH Hi WattHtt M 'WH H HHH H KHHHW 



-114- 



CONFIDENTIAL 



11 Aug. 1942 



Tt.pma of Political Tmnortance 

The public continues to show great interest in the Moscow confer- 
ences. American sources observe that the desperate situation on the 
Eastern Front is more dangerous for Great- Britain than for the 
U.S.S.R. The latter is relatively safe behind the Ural moun- 
tains whereas Britain will have to face the whole impact of the con- 
centrated German power turned against her. The question in Moscow 
is not whether but when a second front is to be established, 

Portuguese naval circles believe that lack of tonnage will prevent 
the British from making a landing attempt in Portugal. 

The Central American governments intend to protest at Washington in 
connection with- the announced complete suspension of ship traffic 
from North America to Central American harbors. A news agency re- 
ports that the U.S. Department of State has concluded an agreement 
with the Central American countries for construction of a 1,000 km. 
transcontinental highway. 

India ; 

Due to the energetic measures on the part of the British Indian 
Government, the Congress resolution has so far failed to produce any 
serious threat to the internal political situation. For reasons of 
propaganda, the German press tries to prove the opoosite. 

Spain : 

The U.S. Ambassador in Madrid stated in a speech in Barcelona that 
everywhere in Spain he has found willingness to cooperate with* the 
U.S.A. 



Conference on the Situation with the Chief, Naval Staff 

I. For a newspaper photo of PT boat S "38" flying the British flag, 
captured by the British in the Channel on 20 Nov. .1940 (see War Diary 
20 Nov. 1940), see War Diary, Part B, Vol. V. 

II. Report by the Chief. Naval Construction Division : 

1. During the operation of the KOELN it became evident that 
the cables of the cruiser are in such bad condition that the ship is 
hampered thereby. It was known that the cables were in poor con- 
dition, but it was hoped that the minor improvements made while the 
ship was being repaired would suffice. 

The Chief, Naval Staff finds this very unfortunate. The Naval Staff 
Quartermaster Division will take care of the matter. 

2. The "Hansa" program can not get under way because there is 
no rolled iron available. The Reich Commissioner of Maritime Ship- 
ping has suggested that the Navy make 7,500 tons of rolled iron 
available for the program. 

During the current quarter the Navy has 50,000 tons of rolled iron at 
its disposal, of which 25,000 tons have already been milled and 18,000 



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CONFIDENTIAL 
11 Aug. 1943 

tons are earmarked for submarines; these cannot be touched. A 
decision must be made about the remaining 7,000 tons. 

The Chief, Naval Construction Division states that there is no way 
of determining now which items would be affected by giving up those 
7,000 tons for the benefit of the "Hansa" program. There are 
certain reserves with which the gap could partly be overcome, but 
delays will be inevitable. , B 

On the other hand, the Chief, Naval Construction Division believes 
that the Navy will not be able to escape a decision by the Fuehrer 
unless it releases the 7,000 tons. The Chief, Naval Ordnance 
Division observes that the naval offices have repeatedly been re- 
proached for hoarding supplies, and in his opinion the request 
should be granted. 

The Chief of Staff, Naval Staff and the Chief, Operations Branch, 
Naval Staff Operations Division both declare that the expected 
delays will affect just those vessels which are urgently needed 
for submarine operations. 

The Deputy Chief, Naval Staff Quartermaster Division suggests a 
compromise solution by releasing possibly 3,000 tons. 

The Chief, Naval Construction Division points out that even this 
would bring about a Fuehrer decision. 

On the assumption that the Navy has some reserve supplies, the Com- 
mander in Chief, Navy decides that the 7,000 tons are to be re- 
leased. 

III. Report by the Chief. Naval Ordnance Division : 

1. The Minister for Armaments and War Production has ex- 
pressed fears that the defense installations on a coastal sector 
near Cape Gris Nez which is particularly well suited for enemy 
tank landings are not adequate, and has stated that he will report 
on the matter to the Fuehrer who is the responsible authority in 
this particular case. The Naval Ordnanoe Division is investigating 
whether the captured Polish 7.5 cm guns could be made available for 
reinforcing the anti-tank defenses of the naval battery in the men- 
tioned sector. 

2. The original smooth cooperation between Army and Navy 
headquarters in the coastal defense program entrusted to the Army 
by a Fuehrer directive is becoming more and more difficult. The 
Chief, Naval Ordnance Division believes that these difficulties 
have their origin in the tendenoy on the part of subordinate Army 
offices to bring the naval fortification construction under their 
control too. It is intended to obtain a clarification from General 
Jacob of the Engineers. 

3. The demand for mobile coastal artillery, raised on the 
occasion of the inspection tour of the Commander in Chief, Navy 

to the west area, is being considered. It is planned to use heavy 
caterpillar guns. To avoid duplication, the Army and the Navy have 
divided development of the gun oalibers in question. The Navy is 
working on 28 cm. guns. 



-116- 



CONFIDENTIAL 
11 Aug. 1942 

IV. Report bv the Chief. Naval Staff Intelligence Division ; 

Reports from Moscow are still too incomplete to permit a clear 
evaluation of the progress of negotiations. The events around the 
Solomon Islands are bound to create a strange impression in Moscow, 
inasmuch as the Americans are carrying out large-scale operations 
involving heavy losses in the Pacific while the Russians are clamor- 
ing desperately for a second front in Europe. Admiral King has 
issued a communique concerning the developments off the Solomon 
Islands. For details see Situation East Asia. 

Basing his report on data from the Army General Staff, the Chief, 
Naval Intelligence Division discusses the economic importance of 
the Caucasus, the road and traffic situation, and population 
problems. 

V. The Chief, Naval Staff asks the Deputy Chief, Naval Staff 
Quartermaster Division whether the request of the Admiral, Arctic 
Ocean for additional 10.5 cm. guns to be emplaced at Agdenes and 
Hysnes (Trondheim Fjord) againBt PT boats penetrating into the 
fjord is being fulfilled. The Naval Staff Quartermaster Division 
will investigate the matter. 



Special Items : 

I. On 9 and 10 Aug. the Admiral. Arctic Ocean reported on his 
plans for operation "Wunderland" (see War Diary 10 Aug.) based on 
instructions from Group North. In its first stage, the operation 
will be aimed at intercepting all convoys and unescorted vessels 
on the western half of the Siberian route. The operation can be 
extended to the Yenisei River by a thrust up to Dickson Island. 
Group North has approved these measures. For the operations plan 
of the Admiral, Arctic Ocean and the stand of Group North see 
l/Skl 1551 and 1557/42 Gkdos. Chefs, in File "Operation 9CHEER 

in the Kara Sea in summer 1942". 

The Air Force, Operations Staff was notified of operation "Wunder- 
land" and of the reconnaissance and escort missions requested of 
the 5th Air Force via Telegram l/Skl I op 1556/42 Gkdos. Chefs. 
The Permanent Representative of the Commander in Chief, Navy at 
the Fuehrer Headquarters was informed for information of the 
Fuehrer via Telegram l/Skl I op 1558/42 Gkdos. Chefs. (See File). 

II. The Naval Staff Quartermaster Division has agreed to the 
organizational changes suggested by the Chief, Naval Construction 
Division at the conference on the situation with the Commander 
in Chief, Navy on 10 Aug. (see War Diary 10 Aug.) namely, that 
the shipyard control staff in Nikolayev be dissolved and replaced 
by inspectors, provided the following projects are carried out as 
promised by the Chief, Naval Construction Division: 

1. Immediate construction of 3 subchasers and 6 war trans- 
ports. 

2. Completion of necessary repairs on warships in the Black 
Sea. 

3. A guarantee to the effect that later there will be a 
possibility of building a navy yard. 

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CONFIDENTIAL 
11 Aug. 1942 

Shipyard personnel released from Nikolayev is to be added to the 
Navy plants which are working efficiently in Mariupol, Kherson, 
Feodosiya, and other places. 

III. According to a report from the Naval Staff Quartermaster Divi- 
sion, Shipping and Transport Branch, 85 ships totalling 254,684 GRT, 
with a loading capacity of 350,087 tons, have been offered to the 
Reich Commissioner of Maritime Shipping. Of these, 23 ships total- 
ling 87,350 GRT, with a' loading capacity of 126,990 tons, have 
already been handed over to the shipping companies. 

The 85 ships placed at the disposal of the Reich Comnissioner of 
Maritime Shipping include all Norway ships and all vessels used in 
distributing and bringing up supplies, as well as all the dispens- 
able troop transports. Ships belonging to the navy yards, arsenals, 
and commissary offices will be handed over shortly. 

IV. As learned by the Naval Staff Operations Division, the destroyej 
in the Grirasoe area scraped bottom or. a rocky ridge in the fairway, 
Thich is only a few hundred meters long, is not charted, and was 

not known before. The Naval Staff Operations Division requests 

the Naval Staff Quartermaster Division to do everything in its power 

to prevent repetition of such accidents. 

V. The Naval Staff Operations Division transmits to the Naval 
Staff Quartermaster Division its views on transferring shipyards 
to the east because of danger from air raids, requesting that this 
idea be followed up, and suggestions be worked out with the Naval 
Construction Division for measures to cooe with this situation. 

For ccpy of the instruction see l/Skl I a 19218/42 Gkdos. in War 
Diary, Part B, Vol. V. 



Situation 11 Aug. 1948 

I. War in Foreign Waters 

1. Enemy Situation : 

There is nothing to report. 

2. Own Situation : 

i 

The Japanese Navy has requested the German Admiral in 
Tokyo to have all prisoners debark in Batavia in the future, with 
the exception of those needed in Tokyo for questioning. German 
ship commands should get in touch with the naval commander in 
Batavia. Secrecy is assured. 

The Naval Attache in Tokyo is requested to indicate immediately the 
ports of departure and destination, as well as the cargoes, of the 
HERBORG and the MADRONO, so that the prize court proceedings can be 
completed. 

The Naval Attache in Tokyo is further requested to state immediately 
the date on which the TANNEN7ELS will reach point "Lille". 



-118- 



CONFIDENTIAL 



11 Aug. 1942 



Via Radiogram 1959 all vessels in foreign waters are informed about 
the sinking of the Dutch steamer, the former German KASSEL, in 
quadrant ET 73 and about prisoner statements that the steamer was 
stopped by U.S. cruisers and destroyers in quadrant ET 4570. 

A report on the enemy situation is being sent nut via Radiograms 
0211 and 2225. 



II. Situation West Area 

1. Enemy Situation : 

Photographic reconnaissance shows 2 destroyers, 1 corvette, 
6 steamers, and 40 small vessels in Cowes. 2 cruisers, 7 destroyers, 
19 mine sweepers, 10 PT boats, some 50,000 to 60,000 GRT of merchant 
tonnage, 9 ocean-going tugs, aoproxiraately 120 tow barges and 80 
small vessels were located in Portsmouth. 160 to 170 vessels were 
located in the upper Chichester Canal near Birmingham, 50 in Adurr 
Firth, 40 to 50 off Southwick. 1 corvette, 19 motor mine sweepers, 
5 PT boats, and 40 small vessels were at Newhaven. No basic changes 
as compared with previous findings have occurred, according to 
reconnaissance photographs. As before, the landing vessels are 
left in the harbors without any camouflage. No movements of these 
vessels have been observed. 

2. Own Situation : 

Atlantic Coast: ' 

At 0730, the 3rd Torpedo Boat Flotilla met the sunply 
ship UCKERFARK in quadrant BF 9917. 

Channel Coast : 

No incidents were reported. 

Special Item : 

The Permanent Representative of the Commander in Chief, 
Navy reports from the Fuehrer Headquarters that the Fuehrer intends 
to have 15,000 concrete emplacements built for the defense of the 
west area. These will require about 200,000 men. The purpose is 
to maintain the defensive preparedness of these seotors against 
enemy landings even in case of heavy air raids. The Naval Staff 
is to establish the order in which the development of the harbor 
defense is to be undertaken. The Naval Staff Operations Division 
is of the opinion that the Naval Staff can do this only if projects 
already under construction are unaffected by this measure. Groups 
North and 'Test are requested to submit priority lists for their 
respective areas not later than on the morning of 12 Aug. For copy 
of the order see l/Skl I op 19630/42 Gkdos. in War Diary, Part C, 
Vol. X. 



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CONFIDENTIAL 
11 Aug. 1942 

III. North Sea, Norway. Arctic Ocean 

1. North Sea : 

Enemy Situation ; 

In the evening air reconnaissance spotted a northbound 
convoy of 19 ships off Lowestoft. British air reconnaissance over 
the North Sea was not very active. 

Own Situation : 

Bad weather partly interrupted convoy operations. Patrol 
positions were not occupied. Except for a few ground mines swept, 
no incidents were reoorted. 

2. Norway. Arctic Ocean : 

Enemy Situation : 

Convoy P^ 18 was not intercepted today either. A sub- 
marine reported weak sound location in quadrant AB 3298 at 1740. 
The submarine assumes the presence of a destroyer or a patrol ves- 
sel. A press report from Washington states that a convoy with 
materiel has safely arrived in a harbor of northern Russia. 

This report seems to be meant for deceptive purposes 
since it does not contain any details. 

Own Situation : 

On 10 and 11 Aug. numerous single enemy planes were active 
over the northern and western coasts of Norway. Convoy operations 
proceeded as scheduled, without incident. 



IV. Skagerrak. Baltic Sea Entrances. Baltic Sea 

1. Enemy Situation : 

According to a Finnish report, Russian forces are sweeping 
mines in the fairway north of Kronstadt. The 4 destroyers reported 
in Kronstadt belong to the STOROSHEVOY class. 

2. Own Situation : 

3 ground mines were swept in the Baltic Sea entrances. 

The transfer of the LUETZOW under escort of forces of the Command- 
ing Admiral, Defenses, Baltic Sea is proceeding according to plan. 
At 1930 the vessels were at the latitude of Copenhagen. The LUETZOW 
reports limited operational readiness. Her maximum continuous speed 
is 24 knots. 

In the night of 10 Aug. some 20 enemy planes flew over northern 
Schleswig and the Danish Islands. Aerial mines were probably dropped 
on shipping routes in the Kiel Bay and in the Baltic Sea entrances. 
No fighter successes were reported. For details see Telegram 0720. 



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CONFIDENTIAL 
11 Aug. 1942 

Minefields "Seeigel XXVI" and "Seeigel XXVIII" in the Gulf of Finland 
have been completed according to plan. 

Group North interprets the lively mine-sweeping activity in the 
Kronstadt Bay as an indication that the enemy's ships are ready to 
sail. Group North is of the opinion that Russian naval warfare has 
taken on a more offensive character as compared to last year in 
spite of less freedom of movement. In this connection, Group North 
refers to the Russian break through the Vlgrund minefield with the 
help of long-range fighters. Since effective support of our naval 
forces by planes depends on the situation at the Northern Army Group, 
and since the Finnish PT boats are oil, can be used only to a limited 
extent, and are often out of commission, Group North renews its re- 
quest for withdrawal of small coastal mine vessels and Italian sub- 
chasers from Lake. Ladoga. The present assignment of these vessels 
to coastal patrol service does not utilize their qualities as of- 
fensive weapons and results in a waste of valuable engine hours. 
The strong armed "Faehre Ost" force affords better protection against 
a Russian landing in Lake Ladoga than these vessels. The vessels 
can only be transferred singly. During this transfer, which will 
take at least 3 weeks, the "Faehre Ost" force can be made fully 
ready for action. Group North adds that it is making tentative 
preparations for the temporary transfer of the 6th PT Boat Flotilla, 
about which the Naval Staff reserved decision. For copy of the 
corresponding directives of Group North to the Commander, PT Boats 
and the Commander, Mine Sweepers, Baltic Sea see Telegram 1548. 
The main base for the PT Boat Flotilla could be Reval or Helsinki. 
The decision is to be made by the Commander, Mine Sweepers, Baltic 
Sea, in agreement with the Naval Liaison Staff, Finland and the 
Commanding Admiral, Baltic Countries. 



V. Submarine Warfare 

1. Enemy Situation : 

Reconnaissance planes were very active over the Bay of 
Biscay. An unsuccessful depth charge attack was made on an. inbound 
submarine 140 miles north of Cape Ortegal. 

2. Own Situation : 

A BV 138 plane is scheduled to make an attempt at refuel- 
ing submarine U "252" off the Olga Strait on 13 Aug. 

Operations against the inbound convoy in the North Atlantic were 
broken off. Although unfavorable weather conditions and strong 
naval and air escorts made the operation extremely difficult, the 
results are quite satisfactory. Unfortunately, 2 or 3 boats are 
presumed to be lost (submarines U "210", "379", and probably "335"). 

In connection with the operation against ship traffic between England 
and America, Group "Loss", consisting of 11 submarines, will take 
up a patrol line from quadrants AL 1955 to AL 8165. Starting with 
1200 on 19 Aug., the submarines are to observe radio silence, except 
for tactical messages. No successes have been reported by submarines 
operating off the American coast and the West Indies. 



-131- 



CONFIDENTIAL 
11 Aug. 1942 

Of the submarines in the South Atlantic, submarine U "130" reports 
8 inking the tanker MIHLO (7,455 GRT) in quadrant ES 5198. Submarine 
U "109" reports that she sank the tanker VTMEIRA (5,728 GRT) and 
took the captain aboard. 

The disposition of submarines in the western Mediterranean in accord- 
ance with the Naval Staff directive has produced a first-rate result. 
Submarine U "73" (Lieutenant Rosenbaum) scored 4 hits on the aircraft 
carrier EAGLE proceeding in an eaatbound force in quadrant CH 9118. 
To judge from sinking sounds, the ship must have been sunk. 

In the eastern Mediterranean, submarine U "83" sighted 4 cruisers 
and 10 destroyers on a westerly course in quadrant CP 5424. An 
attack by the submarine was unsuccessful. For further reports see 
supplement to the submarine situation in War Diary, Part B, Vol. IV. 



XL» Aerial Warfare 

1. British Isles and Vicinity : 

During the day our planes carried out reconnaissance 
flights and raids on towns in England. Strong forces were employed 
in night raids on Eastbourne, Wexhill, and Derby. 165 enemy in- 
cursions over German-controlled territory, 100 of which were over 
the Reich area, where 11 planes were shot down. The main target 
was Mainz. For details of the heavy damage caused in Mainz and 
Wiesbaden see daily situation report. 

80 to 100 demolition bombs were dropped on Le Havre. No damage has 
as yet been reported. 

2. Mediterranean Theater ; 

Throughout the day contact was maintained with the strong 
enemy force of aircraft carriers, battleships, cruisers, destroyers, 
and steamers, proceeding eastward in the western Mediterranean. 
Bombers and torpedo planes were sent into action. According to a 
preliminary report, 2 aircraft carriers and 1 cruiser were hit by 
aerial torpedoes or bombs. Another warship wa6 set on fire by 
bombs. A steamer was hit by an aerial torpedo. 

Fighter attacks on Malta failed to produce any results of importance. 
Fighter-bomber 8 of the Air Command, Africa scored well-plaoed hits 
during their attaok north of Alamein. 

3. Eastern Front : 

100 enemy planes were shot down on 10 Aug. and 60 on 11 
Aug. Reconnaissance activity is reported from the Black Sea. For 
results see Enemy Situation, Black Sea. 



VII. Warfare in the Mediterranean and the Black Sea 

1* Enemy Situation, Mediterranean : 

The ARGUS was located in Gibraltar. At 0800 our air 

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CONFIDENTIAL 
11 Aug. 1942 

reconnaissance sighted the enemy force which had been located on 
10 Aug^ It was heading east probably in 3 groups. An advance 
escort group consisting of 1 carrier, 4 cruisers, 7 destroyers, and 
1 steamer was located some 72 miles north of Algiers at 1245. The 
main group of 3 battleships, probably including the RODNEY and the 
NELSON, 3 aircraft carriers, probably including the WASP, some 20 
to -25 «cruisere and destroyers, and about 20 steamers was proceeding 
west of the advance escort group. An escort group of 6 destroyers 
proceeding south of the main group was located some 75 miles north- 
west of Algiers. 

Interpretation of photographs showed the major part of the force, 
i.e., 2 battleships, 3 aircraft carriers, including the FURIOUS and 
the WASP, 4 light cruisers, 11 destroyers, 10 steamers, and 1 tanker 
71 miles north of Algiers at 1425. Proceeding on a different route 
were 1 aircraft carrier, 1 vessel presumed to be a battleship, 2 
cruisers, 15 destroyers, and 8 steamers. It was in this group that 
the aircraft carrier EAGLE was probably sunk at 1315. 

At 1807 the apparently reunited force of 3 carriers, 2 battleships, 
6 cruisers, 20 destroyers, and 21 steamers was 86 miles north-north- 
east of Algiers. 

At 1955 an aircraft carrier with 5 cruisers or destroyers and 1 
steamer were reported proceeding on a southwesterly course 77 miles 
north of Algiers. This was evidently a damaged aircraft carrier 
which had turned back under escort. The major part of the force, 
i.e. 40 to 50 vessels, was seen for the last time at 2120 while pro- 
ceeding at 15 knots on a 7O course 114 miles northeast of Algiers. 

4 

In the night of 10 Aug. radio intelligence intercepted messages from 
enemy cruisers about 150 miles east-southeast of Malta. Reconnais- 
sance carried out in the morning was unable to determine whether 
the vessels had entered Valletta, since the harbor was at that time 
partly oovered by a smoke screen. Consequently, the radio intel- 
ligence statement to this effect cannot be considered reliable. 

The eastern Mediterranean, too, was the scene of lively activity. 
A force of 4 cruisers and 10 destroyers was proceeding westward 150 
miles north of Port Said (see Submarine Warfare). According to an 
unconfirmed intelligence report, several loaded steamers are re- 
ported to be in Alexandria from where they are scheduled to depart 
for Malta on 12 Aug. Reconnaissance over Alexandria during the. 
morning observed 1 destroyer, 6 small warships, and 13 steamers in 
that harbor. 

Submarines were found to be very active off the Italian harbors. 
The Commanding General, Armed Forces South considers that the 
operations in progress aim at something more than merely supplying 
Malta. 

2. Own Situation. Mediterranean : 

Axis measures against the enemy convoy have begun. For air 
attacks, 5 bomber groups and the aerial torpedo training unit 
from Grossetto are available in Sicily. Other details are not known 
to the Naval Staff. 

In the night of 10 Aug. bomb fragments set an Italian PT boat on 
fire in Marsa Matruh. The vessel was beached. On 11 Aug. an 



-123- 



CONFIDENTIAL 
11 Aug. 1942 

Italian landing craft struck a mine in the harbor of Marsa Mat run 
but is still afloat. 

On the basis of the report of the Italian Admiral at the Naval Staff 
on mine laying in French territorial waters off Cape Bon, the Naval 
Staff transmitted its approval and requested that it be considered 
whether setting the mines for at least 73 hours might not ensure 
greater protection and advantages. 

The German Naval Command, Italy has been notified to this effeot 
(see Telegram 1717). 

Referring to the unsuccessful attempts by the Navy to have the 
Italians lay a permanent minefield in the Strait of Sicily, the 
Armed Forces High Command, Operations Staff asked the German General 
at the Italian Armed Forces Headquarters on 7 Aug. to emphasize 
jointly with the German Naval Command, Italy at the Italian High 
Command that the suggestions and demands of the German Navy also 
definitely represent the desire of the German Armed Forces High Com- 
mand. He should point out to the Italian High Command the import- 
ance of this measure and the undiminished willingness on the part 
of the Germans to aid the Italians. It is suggested that in order 
to achieve quick results it might be advisable for the German General 
at the Italian Armed Forces Headquarters to mention only mining of 
enemy-controlled area, and not for the time being, of the territorial 
waters off the coast of Tunisia, to which the Italians are known to 
be opposed. 

In the meantime this last point has lost its import- 
ance. 

3. Transport of Supplies to North Africa ; 

Transport of supplies from Italy and Greece to North Africa 
and along the North African coast proceeded as planned. 

4. Area Naval Group South : 
Aegean Sea ; 

Nothing to report. 

Black Sea ; 

Enemy Situation ; 

Air reconnaissance reports that 2 steamers departed from 
Novorossisk and 2 tankers from Tuapse. 

Own Situation : 

During the second torpedo operation of the 1st PT Boat 
Flotilla off the Caucasian coast in the night of 10 Aug., 3 PT boats 
southeast of Gelendzhik fired 4 torpedoes on an unescorted tanker 
and missed. After the attack the tanker was temporarily beached 
but was not attacked again. 

The mine-sweeping operation between Mariupol and Yeisk is under way. 
1 landing craft and 1 ferry sank in the course of this operation off 

-134- 



CONFIDENTIAL 
11 Aug. 1942 

Yeisk in the close vicinity of the coast on 10 Aug. as a result 
of mine hits. Convoy operations proceeded as scheduled. 

In view of the rapid progress of Army operations in the direction 
of the Caspian Sea, Group South considers it necessary that a naval 
liaison officer be sent immediately to the let Panzer Army in order 
to safeguard the interests of the Navy and to prepare the transfer 
of naval forces to the Caspian Sea in time. (See Telegram 1110.) 

The Naval Staff Quartermaster Division and the Naval Officer Per- 
sonnel Division have taken up the matter. 



VIII. Situation East Asia 

According to a U.S. Navy Department communique, U.S. forces 
have landed on the Solomon Islands. During the landing operations 
1 U.S. cruiser was sunk, while 2 other cruisers, 2 destroyers, and 
1 transport were damaged. Numerous enemy vessels were destroyed 
and many surface vessels were put out of commission. The attack 
aims at driving the Japanese 'out of the Tulagi area and securing the 
communication routes to Australia and New Zealand. The communique 
states that the surprise landings were carried out according to plan, 
The Japanese, however, quickly launched a counterattack. Heavy 
fighting is still in progress. Considerable losses must be expected 
on both sides. 

According to an American broadcast, the operation against Kiska in 
the Aleutians is completed. Nothing can be said about the results 
until the participating naval forces have returned to their bases. 



IX. Armv Situation 

1. Russian Front ; 

Army Group A : 

The enemy countered the bombardment of the Taman Peninsula 
with heavy artillery fire. 

In the Kuban area our troops are fighting for the possession of 
Slavyansk. One section of the town has already been taken. The 
enemy is trying to attack Krasnodar from the southern bank of the 
Kuban River, which is held by strong forces. A counterthrust has 
been launched. The 1st Panzer Army has extended the bridgehead near 
Maikop. Another bridgehead was established across the Byelaya River 
near Abocheskaya. Cherkessk has been seized. Advance detachments 
are pushing on toward the mountains. 

The III Army Corps advanced in the direction of Elista after crossing 
the undamaged bridge over the Manyoh River. . 

Army Group B : 

The battle of encirclement west of Kalach has ended. The 
remnants of the 62nd and the 1st Panzer Armies, pushed into a small 



-125- 



CONFIDENTIAL 
11 Aug. 1942 

area, were either slaughtered or taken prisoner. Enemy attacks north 
of Voronezh and south of Yelets continue. 

Central Army Group ; 

In the Byelev area our divisions have set out in northerly 
direction to mop up the enemy in the Sukhinichi area. Movements of 
the right wing and the center are in accordance with plans. On the 
left wing, our offensive encountered a heavily mined fortified ter- 
rain. Enemy troops continue their heavy attacks south of Rzhev. 
Enemy tanks again succeeded in breaking through our lines. North of 
Rzhev strong enemy forces have launched an attack. Fighting is still 
in progress. Lack of air support makes our situation difficult. 

Northern Army Group : 

Local fighting is reported. 

2. Finnish Front : * g 
No fighting of importance occurred. 

3. North Africa : 

So far, no report has been received. 



-126- 



CONFID E NTIAL 
12 Aug. 19^2 

Items of Political Importance 

In connection with the Mos cow conferences it is reported that more 
U.C. officers have joined" General Bradley's mission in Moscow. 
According to an Italian report, the Americans have demanded the 
right to occupy Siberian air bases as jump-off points for their 
attacks on Japan. For further conjectures on this subject see 
Political Review No. 187, Paragraph 1. 

The length of the conference, in which Churchill seems definitely 
to be participating, /according to all available reports, indicates 
that the problems under discussion are extremely important. Germany 
would do well to realize that the British and the Americans are 
concentrating their efforts exclusively on convincing Stalin that 
an ultimate Allied victory is inevitable. Russia's offensive 
strength on the sector of the Central Army Group continues un- 
broken and indicates that the Russians do not yet intend to give 
up. 

The international press continues to discuss the problem of the 
second front in Europe without bringing forth any new viewpoints. 
At the present moment, the discussion is focused on the site of 
the future operation. For details see Political Review No. 187, 
Paragraph 2. 

Great Britain : 

A report from a diplomatic source on Great Britain's domestic 
situation confirms the prevailing opinion that the country's 
confidence in a final victory is unshaken. Churchill, who 
has lost much of his popularity, is still considered irreplaceable. 
Cripps has no influence whatsoever. The food situation is still 
quite satisfactory but there is a great shortage of textiles. 
Communist propaganda is undoubtedly making rapid progress, but 
so far the menace is not considered very great. 

According to the Daily Telegraph , *it is not intended to call a 
Parliament session for discussion of the Indian question. The 
Communists in Britain and the radical Socialists in the U.S.A. 
have condemned the arrest of Gandhi and the Congress leaders. 
Unrest continues in India but so far it has failed to assume 
dangerous proportions. 

France : 

Laval spoke about the return of 50,000 French war prisoners in 
exchange for 150,000 French skilled workers . 

According to Swedish and Swiss press reports, rumors about an 
internal coup d'etat are circulating in Vichy. 



Conference on the Situation with th e Ch ief f Naval Staff 

I. The Armed Forces High Command, Operations Staff rejected 
the unjustified complaint of the African Panzer Army High Command 
(see War Diary 10 Aug.) by issuing the following reply: 

According to the Naval Staff, it will take 10 days to unload 

-I27- 



CONFIDENTIAL 
12 Aug. 19i|2 

the ANKARA, which arrived in Tobruk on 6 Aug. I9I4.2. The Naval 
Staff considers this unloading rate satisfactory. Therefore and 
on the .oasis of previous experience, the Armed forces High 
Command, Operations Staff disagrees with the African Panzer Army- 
High Command about the activity of the naval command in Tobruk. 
Any special' wishes are to be taken up with Admiral Weichold 
in Africa. 

II. The Chief, Naval Quartermaster Division reports that the 
Reich Commissioner of Maritime Shipping intends to obtain con- 
trol of the tonnage available in unoccupied French harbors through 
direct negotiations with the French. All efforts of the German 
Armistice Commission, France and of the Foreign Office in this 
direction are known to have failed so far. 

The Fuehrer has decided that control of maritime shipping in the 
Black Sea, claimed by the Reich Commissioner of Maritime Shipping, 
shall for the time being remain with the Navy. 

The Navy must realize that the demands of the 
Reich Commissioner of Maritime Shipping will not 
be satisfied until the Navy has been stripped 
of any respbnsibllity for maritime shipping and 
has lost the last vestige of influence in this 
■ sphere. The farther the Navy retreats from its 
basic demand for naval control of both the 
Merchant Marine and the Navy for the duration of 
the war, the more certain it is that the civilian 
authorities will try to seize control of matters 
closely related to both, 

III. The Chief of the Foreign Affairs Section, Naval Staff 
Operations Division reports that the German Embassy in Ankara 
was directed to draw the attention of the Turkish Government 
to the problem of merchant shipping protection within the 
Turkish territorial waters. The Turkish Government replied that 
the respective commands have been ordered to fire on any vessel 
launching an attack in Turkish territorial waters. For details 
see War Diary, Part C, Vol. VIII. 

IV. The Chief, Naval Intelligence Division adds to his report 
of 11 Aug. a discussion of the presumable reaction of the 
Soviet fleet to a further advance of the German Army and to the 
impending loss of its last bases. See War Diary, Part C, Vol. XlVa. 

In a Very Restricted Circle : 

V. The Naval Liaison Officer to the Army General Staff submits 
his report of 8 Aug. on the Army situation (see War Diary 8 Aug.) 
to the Chief of Staff, Naval Staff. 

VT. The Chief, Operations Branch, Naval Staff Operations Division 
reports that in contrast with the views held by the Naval Staff 
with regard to the submarine operation off Cape Town (see War Diary 
10 Aug.), the Commanding Admiral, Submarines considers it necessary 
to permit the outbound submarines to attack enemy vessels as far 
as I5 S, so that as many enemy ships can be sunk as possible. In 
his opinion, there is no reason to fear that sinkings occurring 
as far south as I5 S might affect enemy shipping in the Cape Town 
area. The Commanding Admiral, Submarines has agreed to the Naval 
Staff's demand for absolute radio silence. 



-I28- 



CONFIDENTIAL 



12 Aug. 191+2 



The arguments of the Commanding Admiral, Submarines have failed 
to convince the Naval Staff. The Naval Staff views the planned 
submarine operation off Cape Town as similar to operation M Pau«r 
kenschlag", and therefore special measures are required to ensure 
its success. For this reason the Naval Staff, after having re- 
examined the plan, is unwilling to alter the stipulation that 
the submarines remain unnoticed after crossing the equator, ex- 
cept when there is a definite chance for an attack on battleships 
or aircraft carriers. 

For copies of the telegrams to and from the Commanding Admiral, 
Submarines see l/Skl I u 1555/1|2 Gkdos. Chefs, in War Diary, 
Part C, Vol. IV. 



Special Items ; 

I. On 7 Aug. G 
ope r a t i on s orde 
The purpose is 
station in the 
Greenland. A w 
ship will leave 
Arctic Ocean, 
possible. The 
the vicinity of 
Spitsbergen. 



roup North submitted to the Naval Staff Its 
r to the weather ship HERMANN for operation "Holzauge w ( 
to establish a meteorological service and a radio 
vicinity of Bismarck Cape on the eastern coast of 
eather buoy is to be laid about half-way. The 

the Narvik-Harstad area as directed by the Admiral, 
The destination should be reached by 25 Aug., If 
HERMANN will remain during the winter either In 

Bismarck Cape or of the northeastern tip of 



The Naval Staff points out that It would be wiser for the HERMANN 
to camouflage herself as an Icelandic than as a Norwegian vessel 
In case enemy planes should fly over the ship. 

4 

II. Concerning the development of harbor defenses in the west 
area (see War Diary 11 Aug.), the Naval Staff has transmitted 
the following priority list to the Permanent Representative of 
the Commander in Chief, Navy at the Fuehrer Headquarters and to 
the Naval Representative on the Armed Forces High Command, Oper- 
ations Staff: 



1. Large harbors: 
Small harbors: 



Cherbourg, Le Havre, Hook of Holland 

Caen, Fecamp, St. Malo, Granville, ■ 
Lezardrieux 



2. 



Large harbors: Brest, Lorient, St. Nazaire, La Palllce, 
Gironde estuary, Flushing and the Scheldt 
estuary 

Small harbors: Morlalx, l'Aber-Vrach, Concarneau, Les 
Sables, D'Olonne 

Large harbors: Boulogne, Calais, Dunkirk, Ostend, 
I jmuiden 



k* 



Small harbors: 
Small harbors : 



Le Treport, Zeebrugge 

Den Holder, Bayonne, Arcachon, St. Jean- 
de-Luz, as well as all the other small 
harbors covered by the defense development 
project for the entire coast front. 



-I29- 



CONFIDENTIAL 
12 Aug. I9I4.2 

Situation 12 Aug. I9U2 

L War in Foreign Waters 

1. Enemy Situation : 

North Atla'ntlc ; 

According t an intelligence report from Canada dated 
29 Jul., most of the grain shipments during June and July went, 
to Russia and to the armies in the Near East, Iceland, and Alaska; 
quite a number of Russian ships loaded with grain have left for 
harbors in Siberia, and the loading is still going on. The next 
large convoy of .ships carrying wheat and flour will depart from 
St. Lawrence Ri v er harbors for England approximately between llj. 
and 19 Aug . At least 26 to 29 steamers will be loaded with 
nothing but grain. Some of them are already arriving to start 
loading. These ships will be joined by freighters carrying 
lumber, ore (Newfoundland), metals, etc., and will depart under 
a particularly heavy escort without U.S. shipments. At New- 
foundland the ships will presumably be joined by 9 or 1° ore 
freighters. ' 

Indian Ocean : 

According to an intelligence report of 3 Aug. re- 
ceived via Vienna, 6 (Tr. N.: This number was originally 66, 
but was changed to 6 by a marginal note on 2I4. Oct. I9I4.2.) 
American ships carrying 3I1, 000 tons of ammunition, tanks, and 
planes for Palestine, Egypt, and Russia entered Basra between 
19 and 26 Jul. Early in July the i|th U.S. Tank Brigade destined 
for Egypt landed in Basra. The road between Basra and Kowelt is 
not yet completed. New highways are being built from Eagdad to 
Basra, Mosul, and Kirkuk. The second railway line between Eagdad 
and Basra is under construction. 

2. Own Situation : 

Radiogram O53O contains the information that the TANNENFELS 
is carrying supplies from Yokohama for ship "10" and other vessels. 

Via Radiogram 2309 all vessels in foreign waters are being notified 
that from now on the Japanese Navy wishes all prisoners to be de- 
barked in Batavia. 

Via Radiogram 2017 all vessels in foreign waters are being informed 
that the first departure of the UCKERMAFK failed and that, as a 
result, it is possible to postpone the order prohibiting the 
submarines from attacking enemy vessels on route "Anton". 

Radiogram O716 contains further information on the efforts 
to influence Chile's attitude in international matters. The 
gradual weakening of her previous stand may be attributed to the 
following factors: 

a. The President's loss of authority due to his inactivity 
and the resulting strengthening of leftist power. 

b. A tempting American offer to nationalize the Chilean 
copper mines. 



-I30- 



CONFIDENTIAL 



12 Aug. 19U2 



c. 
war, in 
circles 



The fact that we. are not fast enough in winning the 
the opinion of the Chilean political leaders (military 
have little to say). Thus, for example, our failure 



to conquer Egypt has given 
Chile. 



a new impetus to our opponents in 



The Naval Attache in Tokyo is being informed via Telegram 0230 
that on 11 Aug. a strong enemy force was located In the western 
Mediterranean and that after the sinking of the EAGLE there were 
apparently still 3 carriers, presumably Including the WASP, 3 
battleships, among them presumably the RODNEY and the NELSON, 
and 1 battle cruiser with that force. 

The Naval Staff has transmitted to Group West, Naval Office 
Bordeaux, for distribution to the respective captains, sailing 
orders for the blockade-runners IRENE, SPICHERN, BUFGENLAND, RIO 
GRANDE, and BRAKE. 

These ships are to take goods to Japan. They can depart during 
the new-moon period in September. Group West will determine the 
date of departure and will be In command up to 3O W. 

For copy no. h, of the sailing orders see l/Skl I k 1535A 2 
Gkdos. Chefs, in War Diary, Part C, Vol. I. 



II. Situation West Area 

1. Enemy Situation ; ' 

Air reconnaissance spotted lively convoy and steamer 
traffic in the western part of the English Channel and the 
northern outlet of the. Bristol Channel. 

One of our submarines sighted a submerged enemy submarine in the 
area off the Loire estuary. 

2. Own Situation ; 

Atlantic Coast ; 

Mine -detonating vessels swept 6 ground mines on route 
"Herz". I4. mine detonations, presumably caused by self -ignition, 
were observed in the Gironde estuary. 3 more detonations occurred 
near lie d'Oleron and lie de Re. 

Group West reports that on 10 Aug. there were repeated and partly 
successful air attacks on in and outbound submarines, and the first 
blockade-runner to depart was located, attacked, and shadowed 
by British reconnaissance planes, and was thus forced to turn back. 
The forces of the Air Command, Atlantic Coast are at present ao 
weak that the operations scheduled at short intervals in September 
are jeopardized. The blockade-runners can leave for their vital 
missions only when the available reconnaissance forces have been 
increased, and new forces have been brought up to protect the 
ships and to fight enemy planes. Group West considers the alloca- 
tion of one complete group of FW 200' s and one of Ju 88 's (the 
latter as auxiliary long-range fighters) as an indispensable 



-I5I- 



CONFIDENTIAL 
12 Aug. I9I4.2 

minimum* 

The Chief, Naval Staff had submitted a similar re- 
quest to the Fuehrer after his return from the in- v 
spection tour in France. The Naval Staff will use 
the very serious threat to blockade-runner traffic 
to lend emphasis to this demand. 

No incidents occurred when the UCKERMARK was being brought in. 

Group West further reports that the demand of the Commanding 
Admiral, Subuarines for reinforcement of the escort forces of 
the Commanding Admiral, Defenses, West in the Bay of Biscay (see 
War Diary 3 Aug.) cannot be fulfilled unless an additional new 
mine sweeper or torpedo boat flotilla can be allocated. Until 
then, the suggestions made by the Commanding Admiral, Submarines 
can be followed only on occasion. Concerning the disposition of 
the new mine sweeper flotillas along the west coast, Group West 
reports that the bth Mine Sweeper Flotilla is operating In the 
southern part and the 2nd Mine Sweeper Flotilla In the northern 
part of the Bay of Biscay. By the end of August the 2nd Mine 
Sweeper Flotilla will have to enter the shipyard. In September, 
the 6th Mine Sweeper Flotilla will operate in the southern 
part and the 8th Mine Sweeper Flotilla in the northern part of 
the Bay of Biscay. By the end of September the 8th Mine Sweeper 
Flotilla will have to enter the shipyard. From October till 
December the 6th Mine Sweeper Flotilla will be available In the 
southern part of the Bay of Biscay. 

The 3rd Torpedo Boat Flotilla is undergoing a J-d&j overhaul 
in the shipyard of La Palllce. 

Channel Coast ; 

During the enemy air raid on Le Havre in the night 
of 11 Aug. some property damage was caused in the naval com- 
munications building. During the day, numerous balloons with 
explosives attached were observed over the areas of Dunkirk 
and Calais. 

At 221+7 naval and Army batteries fired on a westbound convoy 
south of Ramsgate. The effect was not observed. 

Special Items ; 

Group North took up the matter of detailing a naval liaison 
officer to Army Group D, in accordance with the previous sugges- 
tion of Group West, which had been rejected. To safeguard the 
interests of the Navy with the Commander in Chief, West, Group 
North requests that this suggestion be approved, because the 
distance between headquarters of Group North and those of the 
Commander in Chief, West hampers their cooperation considerably 
and produces friction in the Netherlands area, which could be 
eliminated by appointing a naval liaison officer. (See Telegram 
12^5.) 

The Naval Staff definitely endorses this suggestion 
while realizing that the present shortage of per- 
sonnel makes it almost impossible to fulfill. 



-I32- 



CONFIDENTIAL 
12 Aug. I9I4.2 

III* North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

Air reconnaissance observed only light convoy traffic 
along the southeast coast. 

Own Situation ; 

5 ground mines were swept. Otherwise there is nothing 
to report. 

2. Norway, Arctic Ocean 

Enemy Situation ; 

The lively air activity over the west coast on 10 Aug. 
was evidently a systematic search for the LUETZOVV. Radio in- 
telligence failed to yield further details concerning the re- 
sults of this reconnaissance. 

No tactical results were obtained from the reconnaissance 
carried as far -as the southern tip of Ireland and north of 
Iceland up to 23° W. 

Bad weather prevented photographic reconnaissance of Reykjavik 
which was planned in search of convoy PQ 18. Visual reconnaissance 
failed to spot any enemy forces. 

Own Situation ; 

On 10 Aug. the Russian battery on the Rybachl Peninsula 
unsuccessfully fired on land targets. The attack was met by 
counterfire. All 3 torpedoes fired on an eastbound convoy in 
quadrant AC 814-59 missed their target. The submarine chase, in 
the course of which 110 depth charges were dropped, seems to 
have been unsuccessful. On 11 Aug. Russian planes launched a 
low-level attack on Gamvik. A reconnaissance plane flew over. 
Bergen and the Grlmstad Fjord on 11 Aug. 

The steamer GEORGE L. M. RUSS sank after an explosion in quadrant 
AN 3l6l» The captain assumes that she was hit by a torpedo. The 
steamer BOLTENHAGEN sank in quadrant AN 3513 as a result of a 
mine hit. The shipping channel of Krlstiansand South is closed 
as far as Stavanger. 

Group "Rebelkoenig" has been ordered to shift its operations 
area by 155 miles in the direction of 80° proceeding at a speed 
of approximately 9 knots. The order was based on the assumption 
that convoy PQ 18, if at all en route, must have passed the line 
between Bear Island and Spitsbergen. Since visibility has im- 
proved enough to permit fairly reliable, although by no means 
definite and complete reconnaissance, it is becoming doubtful 
whether convoy PQ 18 actually was located. Under the circumstances, 
the press report about the arrival of a convoy In a harbor of north- 
ern Russia (see War Diary 11 Aug.) may actually be authenic. 



-I53- 



CONFIDENTIAL 
12 Aug. 191+2 

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

According to an intelligence report from Norway, 5 
Norwegian ships are in Ooeteborg; two of them, the DICTO and 
the LIONEL, have Britishers aboard. An attempt will probably 
be made to have the ships depart one by one. One ship and 3 
new Norwegian vessels are in Malmoe. These will probably 
depart first. 

2. Own Situation : 

A Danish fishing boat sank west of Samsoe, after a 
British aerial mine exploded in the net. The weather ship 
HERMANN departed for Norway, en route for operation "Holzauge", 
Convoy and transport operations in the area of the Commanding 
Admiral, Defenses, Baltic Sea proceeded according to plan. 
The transfer of the LUETZOlft has been completed. 

The naval situation in the area of the Commander, Mine Sweepers 
Baltic Sea remained unchanged. 

1 

The Commander, PT boats declared that a number of preliminary 
measures are required if 8 vessels of the 6th PT Boat Flotilla 
are transferred to the Gulf of Finland without a tender. For 
details see Telegram O9I+O. The Commander, PT boats reports 
that preparations for the planned operation of the 6th PT 
Boat Flotilla in the west area are either completed or under 
way. 

Group North has transmitted to the Naval Staff a report of the 
Commander, Mine Sweepers, Baltic Sea, stating that the Finnish 
High Command is not so strongly opposed to the transfer of the 
small coastal mine-laying craft and the Italian subchasers 
from Lake Ladoga as is assumed by higher commands. At the con- 
ference in Kotka, the commander of the 1st Air Force likewise 
admitted the uselessness of keeping these vessels in Lake 
Ladoga. The Commander, Mine Sweepers, Baltic Sea suggests 
that the Commanding Admiral, Defenses, Baltic Sea report on 
the matter to the Finnish Marshal personally. Group North ■ 
requests approval of this suggestion (see Telegram I5I+8). 

The Naval Staff will achieve its objective without following 
this suggestion, which appears inadvisable since the Armed 
Forces High Command Operations Staff is already working on the 
matter. 



V. Submarine Warfare 

1. Enemy Situation : 

Reconnaissance over the Bay of Biscay was particularly 
active. At 2208 a British vessel was located 60 miles north- 
west of Bordeaux. 

A broadcast reporting the sinking of an American steamer by a 
submarine off Florida was intercepted from the American cnast 

-13U- 



CONFIDENTIAL 

12 Aug. 19^2 

area. Submarine sighting reports were repeatedly intercepted 
from off the West Indies. 

• 2. Ovm Situation ; 

For the operation of group "Nebelkoenig" see Situation 
Arctic Ocean. 

No incidents occurred in the North Atlantic. In the western 
Atlantic, submarine U "86" sank the auxiliary sailing vessel 
WAWALOMA in quadrant CC I4.5 on 6 Aug. In the West Indies, sub- 
marine U n 15S" sank the Dutch steamer CURACAO (383 GRT), and 
submarine U "66" sank the steamer ROSAWIE (about 5,000 GRT). 
The captain was taken aboard. No reports have been received 
from the submarines in the South Atlantic. 

Mediterranean ; 

The British Admiralty has admitted the loss of the 
EAGLE. No further successes have so far been reported in 
connection with submarine attacks on that convoy. 

In the eastern Mediterranean, submarine U "77" sank 5 more 
sailing freighters. 

3# Special Items ; 

Due to the fact that the UCKERMARK has re-entered port, 
the order prohibiting submarines to attack enemy vessels on route 
"Anton" is being temporarily revoked for the sector south of 20 N. 
In this sector, the submarines are free to attack until further 
notice as far south as 5 S and as far east as 20° W between 0° and 
5° S. For the time being, the submarines are still prohibited 
from attacking north of 20° N. For information sent to the 
Commanding Admiral, Submarines, with copy to Group West, see 
Telegram 1719. 



VT. Aerial Warfare 

■ 

1. British Isles and Vicinity ; 

On the night of 11 Aug. and on 12 Aug. a few of our 
planes raided various English towns j some effects were observed. 
In the night of 12 Aug. bombs were dropped on Edinburgh and a 
neighboring airfield. In the same night enemy planes carried 
out some 100 incursions into the Reich area, again concentrating 
their attacks on Mainz. Cologne and Muenchen-Gladbach were also 
raided. 

2. Mediterranean Theater ; 

According to preliminary oral reports, 1+ waves of 
German planes attacked the convoy located in the western Mediter- 
ranean between 0922 and 20I4.8. Hits were reported on 1 aircraft 
carrier, I4. to 6 cruisers, li|. steamers, and 1 tanker. Of the 
vessels hit, 5 merchantmen are mentioned as sunk. The aircraft 
carrier, alleged to be the WASP, is said to have been put out of 
commission. 

-135- 



12 Aug. 19^2 

3. Eastern Front ; 

Our dive bombers scored- well-placed hits while attack" 
ing the enemy anti-aircraft artfllery position in front of the 
Mountain Corps, Norway. For results of reconnaissance carried 
out over the Arctic Ocean see Enemy Situation, Arctic Ocean. No 
further reports have been received. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean ; 

Western Mediterranean ; 

In the evening the FURIOUS, listing slightly and 
escorted by 3 destroyers, entered Gibraltar from the east. One 
of the destroyers debarked 200 to 250 men who had probably been 
ship-wrecked. Axis air forces maintained contact with the con- 
voy from dawn. At 1100 the convoy was reported proceeding at 
a speed of 13 to 15 knots on a 90° course 50 miles north of Bone 
and consisting at that time of 2 or 3 battleships, 2 aircraft 
carriers, 5 cruisers, 21 destroyers, and 19 steamers and tankers, 
including 1 passenger ship. The sections of the convoy had 
evidently been reunited, but the formation was stretched over 
a wide area. At I7OO its position was reported 26 miles northwest 
of Cape Blanc. Toward 1930 the heavy ships and part of the 
other escort forces turned back westward about 35 miles northeast 
of Bizerte. The rest of the convoy continued to proceed eastward. 
At 2230 it was assumed to be off Cape Bon. 

Air reconnaissance reported that early in the morning 2 des- 
troyers and 2 steamers were proceeding on a westerly course 
south of La Galite. These vessels were observed for the last 
time at 083O when proceeding some 30 miles west of La Galite, 
The vessels presumably departed from Valletta where they had 
been staying since the last convoy operation in June. 

There was nothing noteworthy to report from the western Mediter- 
ranean. The cruiser group which had been sighted on 11 Aug. was 
not intercepted again. 

2. Own Situation, Mediterranean ; 

The Italian Admiral at the Naval Staff has transmitted 
a report from the Italian Admiralty Staff stating that on the 
night of 11 Aug. a minefield set for 72 hours was laid in the 
French territorial waters off Cape Bon. 

Enemy air raids on Navarino and Cagliari on the night of 10 Aug. 
and on 11 Aug. did not cause any damage to the Italian naval 
forces or installations. 

The German Naval Command, Italy reports that on the night of 12 
Aug. it intends to setid 5 vessels of the 3rd PT Boat Flotilla 
under the Flotilla Commander from Porto Empedocle to the area 
off Cape Bon. 2 PT boats will remain In Marsa Matruh ready for 
action against enemy forces in the eastern Mediterranean. No 
submarines are ready for action except 2 in the operations area 

-I36- 



CONFIDENTIAL 



12 Aug. 1942 



in the eastern and 2 in the western Mediterranean. The Italians 
have made provisions for sending out 12 to 15 PT boats. The 
question whether the Italians can send out 2 cruiser divisions 
depends on whether the available fighter protection will be 
assigned to these naval forces or to the Air Force bomber planes, 
The Duce will probably decide in favor of the Air Force. 

The Admiral, German Naval Command, Italy has done everything in 
his power to support the planned fleet action. If the decision 
is made against this action, the Admiral feels that it will mean 
missing the big chance of annihilating the largest convoy under- 
taken so far in the Mediterranean after the heavy enemy naval 
forces, superior in number and arms, have withdrawn. 

Nothing is known about the number of Italian submarines at sea. 

The Italian Air Force reports hits on an aircraft carrier and 3 
cruisers, as well as the sinking of 2 merchant ships. 

The reports received so far do not give a clear picture of suc- 
cesses scored by the Italian and German planes and submarines. 
In addition to the EAGLE, which was sunk, and the FURIOUS, which 
returned to Gibraltar in damaged condition, a third carrier is 
said to h'ave been heavily damaged by dive bombers. 

The Naval Staff has asked the Commander in Chief, Air Force to 
allocate the first 2 of the 5 new mine-sweeping planes which 
will be released in August to the Commanding General, Armed 
Forces, South for the Mediterranean. No further planes can be 
allocated since there are only 9 such planes at the present t 
time, and 7 of them are not ready for action. 

The German Naval Command, Italy has received a reply to this 
effect (see War Diary 4 Aug.). 

3. Transport of Supplies to North Africa : 

In view of the enemy situation, the transport of 
supplies to North Africa has been held up. Supply traffic along 
the North African coast and between Greece and Italy proceeded 
according to schedule. 

4. Area Naval Group South : 
Aegean Sea : 

Enemy Situation : 

On 11 Aug. a submarine was sighted off Milos. 

Own Situation : 

Upon request of the Italian Admiralty, the destroyer 
ZG "3" is assigned to temporary duty with the 8th Italian 
Cruiser Division in Navarino after bringing a convoy Into Suda. 

Small vessels are again permitted to sail in the northern 
Aegean as far as Cape Sunium. 



-137- 



CONFIDENTIAL 



12 Aug. 19i;2 



As for the submarine defense in the Aegean Sea, which considering 
the heavy convoy traffic (up to i| convoys simultaneously) has 
become a serious problem, the Commanding Admiral, Aegean Sea and 
the Shipyard Control Staff have been trying in vain to obtain 
German workers needed for the completion of a subchaser and 5 sub- 
marine decoys, as well as 2l\. armed trawlers in Skaramanga, and to 
arrive at a satisfactory solution of the problems of food and pay 
f or- fhe Greek workers. Group South is justified in urging the 
Naval Staff Submarine Division and the Naval Construction Division 
to reverse their position on these points and to take the necessary 
steps with the Italian Admiralty in order finally to bring about 
the completion of the I4. subchasers and the auxiliary cruiser DRACHE 
under construction in Trieste. Group South further demands the 
following: additional landing craft, 20 of which were destined 
for the Aegean Sea but have in the meantime been sent elsewhere; 
investigation of whether the Italian Admiralty can , make any more 
escort vessels available; more of the particularly well-suited 
Spanish steamers which so far have escaped any submarine attacks. 

For copy of the telegram from Group South see l/Skl 1975UA2 Gkdos . 
in War Diary, Part C, Vol. XIV. 

Black Sea : 

a. No reports about the naval situation have been 
received because of interrupted communications. 

b. With regard to the assignment of available landing 
craft to the task of transporting supplies for Army Group A, the 
Permanent Representative of the Commander in Chief, Navy at the 
Fuehrer Headquarters transmits to the Naval Staff Operations Divi- 
sion, with copy to the Admiral, Black Sea, the following wish 
expressed by the Fuehrer in supplement to the orders Issued to 
the Naval Staff: 

(1) Since the available transport tonnage is hardly 
sufficient for simultaneous execution of all tasks, the vessels 
are to be assigned in accordance with the wishes of Army Group A. 
3 tasks are under consideration at the present moirent: 

(a) Transport of supplies to Yeisk. 

(b) Transport of supplies up the Don River, later as 
far as Kalach. 

(c) Ferrying troops across the Kerch Strait. 

The last-mentioned task is not yet urgent, while, as far as can 
be foreseen, tasks ,(a) and (b) are of equal urgency. According 
to a statement by the Chief of Army Transport, vessels can pass 
under the Don bridges. Supplies can be transported up the Don 
River, and as soon as a mine-free route has been swept, to Yeisk 
as well. 

(2) As soon as the Army Group has reached the coast 
south of the Caucasus, the supply of fuel by sea will become urgent. 
For this purpose even motor mine sweepers and PT boats carrying 
barrels on deck should be employed, if necessary; the supply of 
fuel is a prerequisite for carrying on the operation. No large 
quantities will be required since the number of motorized units 
employed in the operation is small. Details of this problem are 

-I38- 



CONFIDENTIAL 
12 Aug. 19k2 

likewise to be agreed upon with Army Group A., 

Paragraph (1) is in keeping with orders which the 
Naval Staff has already issued to Group South. The 
direct intervention of the Fuehrer Headquarters 
in the solution of the transport problem, about 
which the Army Quartermaster and Group South are 
conferring at the present time at Bucharest, is 
rather unfortunate in the opinion of the Naval 
Staff. As things stand, the transport of supplies 
in the Black Sea is an operational matter of direct 
concern to the Navy. It is to be feared that these 
various orders will place the Admiral, Black Sea 
in a difficult position. The Naval Staff will 
try to clarify the matter. 

c. The Naval Staff's inquiry at the Army General 
Staff, Intelligence Division, East about transport opportunities 
in the Caspian Sea was answered to the effect that the Italian 
subchasers can, under certain circumstances, be transported 
on the road from Rostov via Tikhoryetsk-Armavir-Georgievsk to 
Makhach Kala or from Rostov via Peschanokopskoye-Progradnoye- 
Voroshilovsk-Georgievsk to Makhach Kala. If necessary, the 
hills in the vicinity of Voroshilovsk will have to be bypassed 
by taking the route via Petrovskoye. The roads are said to be 
5 to 8 m. wide. 

Group South has been notified accordingly. 



VIII. Situation East Asia 

No noteworthy reports have been received. 



IX. Army Situation 

1. Russian Front ; 

Army Group A t 

Kerch was under heavy enemy gunfire, possibly to con- 
ceal a withdrawal. In the Kuban area, our troops have reached 
and taken Ivorskaya. South of Ivorskaya the 12th Panzer Division 
is fighting against stiff enemy resistance In swampy, wooded 
terrain. South and northwest of Maikop there is also some mopping 
up to be carried out. The 111th Infantry Division has reached 
Elista, the 370th the area northwest of Elista. The 1st Mountain 
Division took Kardoniskaya (30 km. south-southwest of Cherkessk). 

Army Group B : 

The right wing of the Ij.th Panzer Army succeeded in 
gaining ground to the north against strong enemy resistance. The 
Rumanian units on the Myshkoba River are likewise faced by strong 

-I39- 



CONFIDENTIAL 
12 Aug. 19[|.2 

enemy forces. The regrouping of the 6th Army in the Kalach area 
is proceeding according to plan. Enemy attacks in the Svoboda area 
were repulsed. The 2nd Army is fighting a fierce defense battle 
near Voronezh and south of Yelets, 

Central Army Group ; 

A strong enemy counterattack held up our offensive in 
the area of Sukhinichi. The defense battle of Rzhev reached its 
climax in the fierce fighting against strong enemy tank forces 
concentrated in a small area. The front south of the point of 
penetration was generally maintained. After putting our armored 
forces out of action, the enemy succeeded in throwing our lines 
north of Rzhev back toward the south despite continuous attacks 
by our planes. Our losses are quite heavy. Further enemy 
reinforcements are being brought up. Another enemy attack had 
to be countered near Byeloi. 

The Russians are evidently attempting to strike 
a heavy blow at this point in order to relieve 
Stalingrad which is the main objective of this 
year's summer campaign. 

Northern Army Group ; 

All attacks against the land bridge to the II Army 
Corps south of Lake Ilmen were repulsed. 

2. Finnish Front ; 

No fighting of importance was reported. 

3. North Africa ; 

The situation remained unchanged. 



-ll+O- 



CONFIDENTIAL 
13 Aug. 1942 

Items of Political Importance 

Except for unauthoritative comments in the press, no reports 
have been received concerning the conferences in Moscow and the 
problem of the second front in Europe . 

According to a statement by the British Government, authorities 
in India have the situation entirely under their control. There 
are no indications whatsoever of any important mass movement. 
Unrest is confined to a few large towns. For further details on 
the Indian problem see Political Review, No. 188, Paragraph 3. 

Portugal : 

Concern about the situation is growing under the ever-increasing 
pressure by the British. Salazar is working out a detailed note 
concerning the effect of the British blockade. 

Sweden: 

Since Moscow has rejected Sweden's representations against the 
violations of her neutrality, Sweden is contemplating the re- 
call of her ambassador from Kuibyshev "for a report". 

Turkey : 

The German Government has agreed that Turkey should take over the 
U.S. planes which made emergency landings on Turkish territory. 
The crews have been interned. 

* 

Japan : 

According to circles connected with the Korean liberation move- 
ment, a Korean made an attempt on the lives of Premier Toyo and 
ex-Premier Hirota. Hirota is said to have been badly injured, 
while Toyo suffered minor injuries. 



Conference on the Situation with the Chief, Naval Staff 

I. The Chief, Naval Staff Communications Division reports that 
the installation of radar sets on Italian submarines, in com- 
pliance with the request of the Italian Navy, cannot be started 
before September because our requirements must be met first. The 
7-day test of the instruments by a submarine in the Bay of Biscay 
is now being carried out. 

II. The Naval Attache in Tokyo reports that Japan's wishes con- 
cerning the equipment, etc. to be carried by the Japanese sub- 
marine I n 30 n are being fully complied with. The submarine is to 
depart on 22 Aug. 

III. The Chief, Naval Intelligence Division reports that the agree- 
ment between the German Ambassador in Ankara and Foreign Minister 
Menemencioglu, providing for a strictly confidential relay of in- 
formation of military importance received by the Turkish Foreign 
Ministry, has now gone into effect. 

-nn- 



CONFIDENTIAL 
13 Aug. 1942 

In a Very Restricted Circle ; 

IV. Group West gives an account of the circumstances accompany- 
ing the unsuccessful departure of the blockade-runner UCKERMARK. 
On 10 Aug. at 1700, a Wellington bomber approached the ship at 
440 91 n, 8° 16 » W without dropping bombs. It was observed that 
most of our antiaircraft projectiles rebounded from the target. 
During his second attack at 1710 the enemy used machine guns. 
Thereupon the UCKERMARK changed to an easterly course. The enemy 
maintained contact with the ship until 1800. At 1716 the ship 
reported that she was being shadowed and that she intended to 
continue the breakthrough if the weather became worse. Since, 
however, the weather improved, and she would have had to wait 
another 5 hours until darkness, the ship sent a short signal at 
1935 reporting that she had decided to turn back. Group West 
does not approve of the captain's decision. Unfortunately, the 
radio message sent at 1716 did not reach Group West because a 
wrong code was used. Otherwise the Group would have recommended 
that the ship turn back again and continue her voyage at night- 
fall. The strange thing is that radio intelligence failed to 
intercept any enemy reconnaissance message concerning this event. 
The incident again proves that more planes are needed. A special 
request to this effect has already been received (see War Diary 
12 Aug.) and will be used by the Naval Staff to back up its pre- 
vious demand for increased air protection. 

The Naval Staff cannot readily subscribe to the opinion of the 
Group Command disapproving the action of the UCKERMARK. The 
events of 10 Aug. definitely jeopardized the safe departure of 
this particularly valuable blockade-runner, the first to depart 
this season. The UCKERMARK will have a better chance to break 
through after the air forces. in the Bay of Biscay area have been 
reinforced, than if she- had tried to shake off the enemy during 
the 6 short hours of darkness. As a matter of fact the Naval 
Liaison Officer to the Air Force Operations Staff has reported 
that the Air Force Operations Staff has in the meantime complied 
with the request of the Chief, Naval Staff to the Fuehrer and 
has ordered that the forces of the. Air Command, Atlantic Coast 
be brought up to a full-strength Ju 88 fighter group for patrol 
of the Bay of Biscay. 

V. a. According to another communication from the Naval 
Liaison Officer to the Air Force Operations Staff, dated 8 Aug., 
the Chief of the Air Force General Staff issued an order, based 
on the report of the Commander in Chief, Navy to the Fuehrer 
about his inspection tour in western France, by which 10 more 
minesweeping planes are to be made available. The mine- 
sweeping planes now -available are to be distributed as follows: 
6 planes for the 3rd Air Force, 2 for the Air Force Group Com- 
mand, Central Area, and 1 for the Commanding General, Armed 
Forces, South. 

The Naval Staff Operations Division suggests that 2 of the 5 
minesweeping planes becoming available in August be allocated 
to the Commanding General, Armed Forces, South and 3 to the Air 
Force Group Command, Central Area. This would mean that the 
3rd Air Force will have 6, the Air Force Group Command, Central 
Area 5, and the Commanding General, Armed Forces, South 3 mine- 
sweeping planes at their disposal. The Naval Staff agrees with 
the suggestion that 5 of the 10 additional planes which will be- 
come available by 1 Oct. 1942 be allocated to the 3rd Air Force 

-ll|2- 



CONFIDENTIAL 



13 Aug. 194k; 



and the other 5 to the Air Force Group Command, Central Area. The 
monthly production of 2 mine-sweeping planes during the following 
months will be needed for replacements. 

b. The Air Force Operations Staff considers the enemy's 
night raid on Osnabrueck of 9 Aug. as very successful, particularly 
in view of the fact that it was executed during the new-moon period. 
The attack must have been guided by radio beams. During the new- 
moon nights the effectiveness of our night fighter operations is 
considerably reduced. Our own planes often do not locate their tar- 
gets in the British Isles. 

c. In case of operations on the Iberian Peninsula, the 
objections of the Chief, Naval Staff regarding the proximity of 
the airfields'to the coast will be taken into account. The Air 
Force Operations Staff fully recognises the validity of these ob- 
jections. 



Special Items : 

I. A map showing damage and losses from aerial mines and bombs 
dropped by the enemy in July 1942 show a concentration on the 
German Bight and the western part of the Baltic Sea. This infor- 
mation was sent to Groups West and North, the Commanding Admiral, 
Norway, the Commanding Admiral, Defenses, West, the Commanding 
Admiral, Defenses, North, the Commanding Admiral, Defenses, Baltic 
Sea, and the Air Force. See copy no. 9 of l/Skl IE 19035/42 
Gkdos. in War Diary, Part C, Vol. VI. 

II, • On 16 Jul. the Air Force General attached to the Commander in 
Chief, Navy stipulated the basic requirements for providing and 
training initial and replacement flying personnel for the GRAF 
ZEPPELIN. These requirements were submitted to the respective Air 
Force departments (see War Diary 16 Jul.). The additional re- 
quirements in personnel, which will result if the 5 aircraft car- 
riers demanded by the Fuehrer become available by the end of 1944, 
make it necessary to handle the personnel problem outside of the 
Navy. Thus a naval air force must be created, which would in-, 
elude the carrier-based planes. 

This problem must be solved because the Naval Staff believes that 
in the long run not only the morale of the crews but also the 
readiness of the ships to go into action will be affected if com- 
mand over the personnel alternates constantly between Air Force 
and Navy. 

Moreover, the Naval Staff is of the opinion that the organization 
and maintenance of the carrier and ship plane forces will create 
an undesirable personnel and training problem for the Air Force. 
On the one hand, this may delay the operational readiness of the 
ships; on the other, it may serve to diminish the expected op- 
position of the Commander in Chief, Air Force to an independent 
naval air force. 

\ 
The Naval Staff has therefore approached the Naval Staff Quarter- 
master Division, the Naval Officer Personnel Division, the Naval 
Recruitment Division, and the Air Force General attached to the 
Commander in Chief, Navy In order to initiate the necessary steps 
to solve this problem in time. 

-143- 



CONFIDENTIAL 
13 Aug. 1942 

For copy 7 see l/Skl 17432/42 Gkdos. in War Diary, Part C, Vol. 
V. 

III. Radio Intelligence Report No. 32/42 of the Naval Communica- 
tions Division, Communications Intelligence Branch contains a 
compilation of enemy reports intercepted by the radio decoding 
and radio intercept services between 3 and 9 Aug. 1942. 

The results of radio decoding are still extremely poor since up 
to now we have not been able to break the new British and Ameri- 
can codes. An approximately accurate picture of the disposition 
of the enemy's naval forces, based on radio intelligence data, 
is therefore lacking at the present time. 



Situation 13 Aug. 1942 

I. War in Foreign Waters | 

1. Enemy Situation ; 

South Atlantic ; 

The British steamer NURJEHAN sent a QQQ signal from 
quadrant ET 8240. The Admiral, Freetown reported on 5 Aug. that 
one vessel had proceeded on an easterly course until 17 Jul. and 
was later sunk by a PT boat operating with an auxiliary cruiser. 
The size of the auxiliary cruiser is 3,500 GRT, that of an ac- 
companying ship about 1,000 GRT. The report probably refers to 
the sinking of the GLOUCESTER CASTLE by the light PT boat from 
ship "28". The GLOUCESTER CASTLE sent an SSS message from 6° 30' 
S, 1° E on 16 Jul. at 2257. 

A report of the headquarters in Freetown concerning the sinking 

of the steamer DALHOUSIE on 9 Aug. states; "At present no British 

naval forces available for rendering aid. 1 ' 

The Naval Attache in Lisbon reports that on 1 Aug. a convoy con- 
sisting of 5 troop transports and 20 steamers and escorted by 1 * 
vessel of the ILLUSTRIOUS class, 2 cruisers, and 12 destroyers ™ 
was sighted in Freetown. 

The Consulate in Lourenco Marques reports that on 10 Aug. 1 
cruiser and 3 destroyers, as well as 2 ships of the size of the 
steamer QUEEN MARY, departed from Cape Town in southeasterly 
direction. 

2. Own Situation ; 

Via Telegram 2100 the Naval Staff notified the Naval 
Attache in Tokyo that the captain of the DOGGERBANK has been 
awarded the German Cross in gold. At the same time the Naval 
Attache was requested to ask the captain to report at his con- 
venience on the morale and behavior of the crew of the DOGGER- 
BANK during the unusually- long and uneventful periods of wait- 
ing. 



CONFIDENTIAL 



13 Aug. 1942 



Via Radiogram 1629 the Naval Staff Informs all vessels In foreign 
waters about the production of new enemy ships in 1942 and about 
other enemy plans for overcoming the transportation crisis. Radio- 
gram 2241 contains corrections on the Japanese statement concern" 
ing the naval battle in the Solomon Islands. Information on the 
enemy situation is sent out via Radiogram 0614. 



II. Situation West Area 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation ; 
Atlantic Coast ; 

No incidents of importance occurred. 

Channel Coast ; 

Prom 0124 to 0133 our batteries fired on enemy ships 
located in quadrants BP 3322 and 3321. After the first salvo, 
the ships withdrew on zigzag courses. Beginning at 0245, the 
long-range battery at St. Margaret on Cliff opened fire on a 
German convoy off Cape Blanc Nez. An Army battery returned the 
fire from 0251 to 0337. Prom 0314 on, the enemy continued a 
rapid fire. The projectiles struck off Cape Blanc Nez and in 
front of the soldiers' cemetery west of Sangatte. 

A mine-detonating vessel swept a mine at point "Herz 222". 



III. North Sea t Norway. Arctic Ocean 

1. North Sea : 

Except for 2 ground mines swept in quadrant AN 6998, no 
incidents were reported. 

2. Norway, Arctic Ocean ; 

Enemy Situation ; 

Through decoding of an Admiralty report, it has be- 
come known that during the RAP attack on the PRINZ EUGEN on 17 
May 1942 the enemy lost 9 planes, i.e., 7 torpedo bombers, 1 
Hudson, and 1 Beaufighter. The report states that in the course 
of the battle the Beaufighter fired on German destroyers with 
cannons and machine guns. No further information about the 
PRINZ EUGEN was contained in this report. 

-ili5- 



CONFIDENTIAL 
13 Aug. 1942 

According to an intelligence report from Stockholm, the follow- 
ing forces have been available for the Allied patrol service in 
the Arctic Ocean since 22 Jul.: 

a. Great Britain : 8 submarines, 2 destroyers, 6 PT boats, 

1 aircraft carrier, 34 naval planes. 

b. U.S.A. t 6 submarines, 1 destroyer, PT boats, 

12 naval planes. 

c. Russia : 6 submarines, 1 light cruiser, 4 to 6 

PT boats, 30 to 40 naval planes. 

d. Holland : 1 submarine and 1 small cruiser built 

in 1916. 

Reconnaissance in the Arctic Ocean up to Iceland and toward Spits- 
bergen on 13 Aug. brought no new information. Reconnaissance of 
the Kara Strait and the Yugor Strait was unsuccessful due to low- 
lying clouds. 

Own Situation : 

No incidents were reported. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

Mine operation "Oppeln" (experimental minefield) in the 
Skagerrak was executed according to plan. The Danish steam • 
trawler KAP sank southeast of the Lim Fjord as a result of a 
mine hit. The departure of the Oslo-Aalborg convoy was post- 
poned for 24 hours on account of mines. For the same reason, the 
routes in the Baltic Sea entrances were temporarily closed. 

The Finnish steamer HELEN struck a mine and sank east of Cape 
Arkona . 

Minefield "Seehund III" was laid in the Gulf of Finland according 
to plan. 

Bad weather prevented operations by mine-sweeping pinnaces. 

With reference to the demands of the Commander, PT Boats for equip- 
ment, materiel, and shelters to be made available in case of a 
transfer of the 6th PT Boat Flotilla to the Commander, Mine Sweep- 
ers, Baltic Sea (see War Diary 12 Aug. and Telegram 1425 of 13 Aug.), 
Group North points out that the requirements will have to be limited 
to a minimum. Since the transfer is only temporary, the PT boats 
will have to be satisfied with temporary Installations. For de- 
tails see Telegram 0911. 

With reference to the suggestion of the Commander, Mine Sweepers, 
Baltic Sea and the request of Group North concerning the transfer 
of the small coastal mine-laying craft and Italian subchasers 
from Lake Ladoga to the Gulf of Finland, the Naval Staff calls the 
attention of Group North to the definite and unequivocal rejection 
of that request by the Marshal of Finland in his statement to the 

-U4.6- 



CONFIDENTIAL 
13 Aug. 1942 

German General at the Finnish Headquarters. Therefore, as long 
as the situation remains basically unchanged, a renewal of this 
request to the Marshal of Finland is out of the question. The 
vessels can be transferred only if the Finns on their own agree 
to have them withdrawn from Lake Ladoga. (See Telegram 1316.) 



V. Submarine V/arfare 

1. Enemy Situation ; 

Lively reconnaissance activity was reported from coastal 
waters off Brest. At noon planes in cooperation with a destroyer 
were engaged in submarine chase. Several submarine sighting re- 
ports were intercepted. 

At 2200 the U.S. steamer CALIFORNIA reported that she was being 
attacked by a submarine some 500 miles southwest of the Cape Verde 
Islands. Other submarine attacks were observed southwest of the 
Mississippi Delta and in the Windward Passage. 

2. Own Situation ; 

Because of the ice, submarine U "255" is being with- 
drawn from her position off the Olga Strait. Submarine U "601" 
has been ordered to ascertain (for operation "Wunderland" ) the 
ice conditions off Cape Zhelaniya (northeastern tip of Novaya 
Zemlya ) . t 

In the North Atlantic, radio intelligence intercepted messages 
from the westbound convoy in quadrant AL 5112, which was to be 
attacked by group "Loss". 

In the western Atlantic, submarine U "98" sighted a southbound 
convoy of 6 steamers in quadrant 0B 3689 but lost contact with 
it at nightfall. 

Several submarines scored gratifying successes in attacking a 
convoy of 24 steamers in the V/indward Passage. Submarine U "658" 
sank a 7,000 GRT tanker and probably also an 8,000 GRT steamer. 
Submarine U "600" reported sinking 2 steamers totalling 14,000 
GRT and scoring another torpedo hit. 

Submarine U "508" torpedoed 2 ships in a convoy of 4 steamers in 
the western entrance .of the Florida Strait and heard sounds of 
sinking. Anti-detection decoy devices (Bold) were used for the 
first time with success against a depth-charge attack. The size 
of each of the 2 steamers was estimated at approximately 8,000 
GRT. 

In the Mediterranean, submarine U "73" attacked 2 destroyers in 
the approach to the Strait of La Galite and heard 1 hit. It is 
not known whether they were sunk. 

For further reports see supplement to the submarine situation in 
War Diary, Part B, Vol. IV. 



-lltf- 



CONFIDENTIAL 
13 Aug. 1942 

VI. Aerial Warfare 

1. British Isles and Vicinity : 

On the night of 12 Aug. and on 13 Aug. small numbers 
of our planes attacked localities on the coast, including Edin- 
burgh. 1 patrol vessel and 1 vessel apparently serving as liv- 
ing quarters were sunk near Salcontoa. On the night of 13 Aug. 
enemy planes made 35 incursions, 31 of which were over Reich 
territory. No bombs were dropped but the planes are presumed to 
have dropped mines. They penetrated as far as Doberan-Treptow- 
Copenhagen. Balloons with incendiary fuses were shot down near 
Erfurt. For details of the heavy damage caused in Mainz on the 
night of 12 Aug. see daily situation report. 

2. Mediterranean Theater : 

No final results of the offensive operations against 
the enemy convoy attacked on 13 Aug. have been received so far. 
Contact with the vessels which reached Malta was maintained up 
to a point close to the southern coast of the island. 

Photographic reconnaissance of Port Said, Suez, and Port Ibrahim 
failed to yield any new data. For details see dally situation 
report. 

3. Eastern Front : 

101 enemy planes were reported shot, down on the Army 
fronts on 12 Aug. 

On 12 Aug. 2 steamers of 2,000 GRT each were sunk off Novorossisk, 
1 steamer of 500 GRT was sunk off Anapa, and 1 steamer of 600 GRT 
was sunk in the bay of Temryuk. Other vessels were damaged. 

For reconnaissance results see Enemy Situation, Black Sea. 

In the Gulf of Finland, 1 mine sweeper was damaged in Lavansaari. 



VII. V/arfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

According to an intelligence report from Spain, the 
aircraft carrier FURIOUS, which arrived in Gibraltar on the 
evening of 12 Aug., entered the dock on 13 Aug. The ship is 
probably damaged. A destroyer with a damaged bow, probably as a 
result of collision, arrived in Gibraltar from the east. The 
ARGUS was in the harbor on 13 Aug. Air reconnaissance reports 
from the eastern Mediterranean that at 0800 2 cruisers, 4 de- 
stroyers, and 7 small vessels were proceeding on a westerly course 
60 miles west of Cyprus, while 2 destroyers were south of there. 
8 westbound vessels, apparently escort vessels, were sighted off 
Alexandria. 



-1U8- 



CONFIDENTIAL 
13 Aug. 1942 

» 

Operations against the convoy : 

It is not yet possible to form a clear picture of the 
successes scored by Axis planes and submarines during the day and 
the night of 12 Aug. Worth noting among the numerous separate 
reports received yesterday are the statements that an aircraft 
carrier was set on fire by 6 bombs from dive bombers and that an 
Italian submarine torpedoed a cruiser. With the exception of the 
heavy forces which turned back around 1930, the enemy convoy 
passed Cape Bon in easterly direction around midnight. No evid- 
ence of the effect of -the Italian minefield recently laid in this 
area has been observed so far. At 0400 the convoy was proceeding 
36 miles southwest of Pantelleria and consisted at that time of 3 
to 4 cruisers, some 10 destroyers, and about 10 steamers. Later, 
reports speak of approximately 15 escort vessels, including the 
UNICORN which is mentioned very vaguely and probably was not there 
at all, and 9 merchant vessels. German and Italian PT boats and 
planes were engaged in the operation against the convoy during the 
night. 4 boats of the 3rd PT Boat Flotilla, which were brought 
up at top speed, directly from Crete, set 1 steamer of 15,000 GRT 
on fire with a torpedo hit and torpedoed 1 tanker of 10,000 GRT, 
1 tanker of 12,000 GRT, 1 steamer of 8,000 GRT, and probably also 
another steamer. Since the PT boat;s encountered strong defense 
action, they could not wait to watch the ships sink. One of the. 
PT boats suffered slight casualties as a result of a shell hit. 
All vessels have arrived in Porto Empedocle. No complete reports 
have as yet been received about the successes of the Italian PT 
boats. The Air Force General Staff has reported the successes of 
the German Air Force. They must have increased even further dur- 
ing the morning, because at around 1400 only 4 or 5 merchant , 
vessels and 4 to 6 light escort vessels were reported in the 
enemy convoy 20 miles west of Malta. Around the same time, 1 
damaged aircraft carrier in flames, assumed to be the WASP, was 
off Bizerte, and 3 other burning ships including 1 tanker were 
off Cape Bon. At noon 1 battleship, 1 cruiser, and 4 destroyers 
were located 26 miles north of Cape Bougaroun returning west. The 
second battleship and the fourth carrier, which may also be 
assumed to have turned back and to be en route to Gibraltar, were 
not located. In the evening 3 cruisers and 4 destroyers were 
sighted proceeding westward northwest of Malta. These vessels 
were probably escort forces detached from what was left of the 
convoy, which in the meantime entered Valletta. As things stand 
now, no more than 5 or 6 enemy merchant vessels may be assumed 
to have reached the harbor of Valletta. Since it is pretty certain 
that 21 merchant ships departed from the Strait of Gibraltar in 
an easterly direction, the fact that an extraordinary success has 
been achieved is established beyond doubt. The losses and damages 
inflicted on the warships, particularly on the aircraft carriers, 
also represent an all-time high, as far as can be gathered from 
reports received so far. 

As had been expected, the Duce decided against the participation 
of the fleet in this operation. The Italian cruiser force, which 
was repeatedly although unsuccessfully attacked by enemy planes 
on the night of 12 Aug. in the Tyrrhenian Sea, was ordered to re- 
turn to port. 

The 3rd PT Boat Flotilla has been ordered to search for damaged 
or returning enemy vessels in the area between Cape Bon and Cape 

-Hj-9- 



CONFIDENTIAL 



13 Aug. 1942 



Blanc during the night of 13 Aug. At 2000, 2 boats of the 
flotilla will depart from Porto Empedocle. 

3. Transport of Supplies to North Africa ; 

Ship traffic from Italy and Greece is at a standstill. 
On the evening of 12 Aug. 1 transport submarine departed from 
Taranto for Tripoli. As for the transport of supplies along the 
North African coast, on the morning of 12 Aug. an enemy submarine 
sank the OGADEN en route from Benghazi to Tobruk. 

4. Area Naval Group South : 

Aegean Sea : 

Destroyer ZG "3" has arrived in Navarino. Convoy 
operations proceeded according to plan, with no incidents to 
report. 

Black Sea : 

Since according to interpretation of photographs taken 
on 9 Aug. and according to radio intelligence, the cruiser KRASNY 
KHIM is evidently undamaged, the vessel sunk by Italian sub- 
chasers on 3 Aug. was probably a three-funnel destroyer. This 
assumption on the part of the Naval Staff is recorded in the War 
Diary, 3 Aug. 

Since the PT boat attack off the Caucasian coast during the night 
of 10 Aug. was detected by the enemy, there is no objection to 
announcing the sinking success scored on the preceding night. The 
Minesweeping Command, Crimea is being dissolved following comple- 
tion of its special mission. 

Convoy operations proceeded according to plan without any in- 
cidents. 

Special Items : 

The Naval Staff has Informed Group South and the Admiral, 
Black Sea that paragraph 1 of Vice Admiral Krancke's instructions 
is a confirmation of a previous directive of the Naval Staff on the 
subject, and that, with regard to paragraph 2, the procedure to be 
followed must be agreed upon with Army Group A. 

Group South has submitted a summary of the results reached at the 
conference with the Naval Liaison Officer to the Army High Command 
and the representative of the Army General Staff in Bucharest. 
For copy of the telegram see l/Skl 19766/42 Gkdos. in War Diary, 
Part C, Vol. XIV a. The results can be summed up as follows: 

(1) The Army drops the Idea of shifting the main supply route 
for Nikolayev to Sevastopol. 

(2) In the Sea of Azov, the Army demands that in addition to 
transports from Taganrog to Azov 1,500 tons of supplies be trans- 
ported daily from Mariupol to Yeisk. 

(3) Even after the execution of operation "Bluecher II" the 
Army will need landing craft for transporting some troops from 
Kerch to Taman. 

-I50- 



CONFIDENT I AL 
13 Aug. 1942 

(4). The Army declares that, due to the inadequate capa- 
city of railroads and other means of land transportation, it is 
of decisive importance for fast progress of these operations to 
adapt supply transport by sea to the requirements of the Army 
operations in the Black Sea area. For this purpose the Army 
desires that the transport vessels operate as far east as pos- 
sible, for example, as far as Novorossisk; from there, landing 
barges will bring the supplies farther up. It is urgent that 
6,000 tons of fuel be brought to Novorossisk immediately after 
its seizure. 

Re: (2) Group South believes that the , Sea of Azov must 

first be cleared of the magnetic mines which were located there. 

The ship tonnage will be increased by bringing up tugs from the 
Danube. 

Re : (3) Group South is of the opinion that, after having 
completed operation "Bluecher II", the landing craft must be re- 
leased for assignment elsewhere and must therefore be replaced 
either by Army barges or by additional tugs from the Danube. 

Re: (4) Group South can agree to using small transport 
vessels for bringing supplies to Sevastopol or even to Feo- 
dosiya, as soon as motor mine sweepers and escort vessels be- 
come available after termination of operation "Bluecher II". 
Group South is, however, not in a position to assume responsi- 
bility for the transport of supplies to Kerch and to Black Sea 
ports situated farther to the east unless the routes are 
thoroughly swept and Russian surface forces eliminated from that 
area. The steamers, of which there are only 13 available in 
all, can be used only in the most pressing emergency. The Group 
therefore suggests concentration of all landing craft (some 35 
up to the end of August) and establishment of supply transport 
routes from Feodosiya or Kerch to Anapa or .Novorossisk with in- 
termediate ports, so that 700 tons per day can be delivered. 
The Admiral, Black Sea would be in control of the traffic and 
in charge of the escort forces. The supplies would be brought 
to Kerch or Feodosiya from Nikolayev or Sevastopol by train. 
In order to keep pace with the over-all situation, the Navy 
will continue its efforts to expand sea transport to the east 
as soon as possible. 

The Army Quartermaster General, who will transfer to the 11th 
Army High Command his authority with regard to supplies for 
Kerch and farther east, is to be the only requisitioning agency 
of the Army. 

Group South suggests that either sea transport for the Air Force 
be included in the "aforementioned arrangement, or a definite 
amount of tonnage be reserved for the 4th Air Force. 

Group South assumes that the reported regulation supersedes 
the directive transmitted by Vice Admiral Krancke. Group South 
also mentions the differences of opinion which were caused by 
that directive, particularly at the command of the Admiral, Black 
Sea. (See Telegram 2045.) 

The only point still to be clarified is whether the authority 
for requisitioning transports will rest with Army Group A or 
with the 11th Army High Command. 



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CONFIDENTIAL 
13 Aug. 1942 

VIII. Situation East Asia 

No noteworthy reports have been received. 



IX. Army Situation 

1. Russian Front ; 

Army Group A t 

An assault detachment found the southern part of the 
Taman Peninsula free of enemy troops. 

On the Krasnodar sector, enemy attempts to cross the Kuban River 
in northerly direction were thwarted. Our advance detachments 
pushed forward up to 50 km southwest of I.'aikop. The enemy is 
being mopped up in the wooded area near Pyatigorsk. 

Army Group B ; 

The right wing of the 4th Panzer Army has pushed for- 
ward as far as east of the railway station of Chinguta. Near 
Kletskaya, our troops seized the hills east of that town. The 
8th Italian Army took over the defenses on the Don River. Fight- 
ing north of Voronezh continues. South of Yelets the enemy re- 
newed his stubborn attacks without lasting effect. The Command- 
ing General of the Russian army in the northern Caucasus, Mar- 
shal Budienny, is reported to have been wounded in a low-level 
attack by our planes on 11 Aug. 

Central Army Group : 

Our offensive in the Sukhinichi area is slowly gain- 
ing ground toward the north. Strong enemy forces brought up 
from the area southwest of Moscow launched an attack east of 
Vyazma. Fighting in the Rzhev area continues with varying suc- 
cess. 

Northern Army Group : 

Local attacks by enemy troops were repulsed. 

2. Finnish Front ; 

No noteworthy fighting was reported. 

3. North Africa : 

Artillery and patrol activity was reported. Because 
of the enemy convoy force, German motorized units have been 
transferred to Solium and Marsa Matruh. 188 German and 173 
Italian tanks are available in this area. 

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CONFIDENTIAL 
14 Aug. 1942 

Items of Political Importance 

In connection with the question of the second front In Europe , in 
some quarters the demand is again being made that the project be 
treated with restraint or even dropped altogether. U.S. Ambassador 
Stanley in Moscow is said to have made very bitter remarks about 
the Anglo-American failure to keep the promise given. Churchill's 
secretary is quoted as saying that the heavy Allied ship losses, 
which are much more ser-ious than officially admitted, are an important 
factor in this problem. 

India ; 

The Indian situation greatly preoccupies Britain's allies, and has 

reportedly led them, particularly the U.S.A. and China, to urge 

Britain to come to terms with India. The earlier proposal that the 

Russians, Americans', and Chinese jointly guarantee India's indepen- 
dence - after the war, of course - is again being mentioned. 

Japanese circles expect that further German successes in Egypt and 
in the Caucasus will not fail to influence the attitude of the 
Moslems in India. But even these Japanese sources warn against 
over-estimating the importance of the present unrest in India. 

Lisbon watches the developments in India with interest because of 
their" possible effect on Portuguese possessions in that area. 

Russo-Japanese Relations : 

Russo-Japanese relations are receiving more attention in Allied^dis- 
cussions. U.S. circles are convinced that the next target of a 
Japanese attack will be Vladivostok, and not Australia or Hawaii. 
The decisive moment will come after the fall of Stalingrad. 

According to information from Chungking, some 52 new divisions 
brought up from Japan and Indo-China are now stationed on the Si- 
berian -Manchurian border. China will open an offensive the moment 
the Japanese forces are withdrawn from the Chinese front for op- 
erations against Russia. 

• 

Great Britain : 

On 15 Aug. the Production Minister declared once again that the com- 
ing 80 days will be the hardest in Britain's history. In Russia, 
the Volga life line is imperiled; in Egypt, bitter fighting will 
break out within the next few weeks. To give his listeners some en- 
couragement, Lyttleton added that in July the Allied merchant ship 
losses decreased, while the number of German submarines destroyed 
increased and greatly exceeded the previous average. Great Britain 
will attempt to disrupt German submarine production by attacks on 
submarine yards and bases. 

South America : 

According to Italian press reports from Buenos Aires, the U.S.A. in- 
tends to establish a naval base at the La Plata estuary. Such a base 
would constitute a "direct strategic threat to Argentina. So far, Uru- 
guay has ceded the following bases to the U.S.A.: Maldonado, Colonia, 
Piriapolis, Punta del Lobos, Coriti, Punta del Este, and Montevideo. 



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CONFIDENTIAL 
14 Aug. 1942 

Conference on the Situation with the Chief, Naval Staff 

I. Report by the Deputy Chief , Naval Staff Quartermaster Division ! 

1. Group North has submitted a detailed and comprehensive re- 
port on Baltic Sea warfare in 1941. The work was prompted by a re- 
quest of the Nautiku3 for a contribution on this subject. The 
Fuehrer showed interest in the report and expressed his appreciation 
of the effective work performed with such amazingly scanty means. 

2. The Minister for Armaments and War Production reported to 
the Fuehrer on the labor situation, pointing out that the withdrawal 
of shipyard workers and specialists for all phases of submarine war- 
fare jeopardizes the completion of other essential items. The 
Fuehrer, however, decided that his directive should remain in force. 
However, the personnel of the naval yards is to be screened once 
more for the purpose. 

The Chief, Naval Staff orders the Naval Construction Division to 
keep him informed on schedules governing the allocation of workers. 

II. Report by the Chief, Naval Ordnance Division 

1. There is friction between the Commanding Admiral, Norway 
and the Commanding General, Armed Force3, Norway. 

2. The Fuehrer order is discussed which provides that in the 
interest of limited military aid to Japan, deliveries to Japan 
should not be made dependent on any economic conditions, either 
financial or in connection with patent rights. In loading submarine 
I "30", the Japanese have been making extensive use of German gener- 
osity. 

3. The 40,000,000 Mark deficit from the construction cost of 
the new cruiser "L" delivered to the Russians is to be transferred 
to a trust company designated for this purpose. 

4. The guns of the first 15 cm turret on a German destroyer 
have been harmonized. 

5. The Commanding Admiral, Group North has expressed appre- 
ciation to the Mining and Barrage Inspectorate for its smooth co- 
operation in placing at the disposal of Group North 24,000 mines 
and 6,000 anti-sweeping devices. 

III. The Chief of the Underwater Obstacles Branch, Naval Ordnance 
Division reports that no new firing devices have been found on the 
enemy mines investigated" in Marsa Matruh. 

IV. The Chief, Naval Staff states that no definite indications of 
an attack on Russia could be found in the large number of Japanese 
reports. 

In a Very Restricted Circle ; 

V. The Chief, Foreign Affairs Section, Naval Staff Operations 
Division reports on the question of the treatment of Germans in 
Guatemala and their repatriation from that country, raised by the 
Commander in Chief, Navy, as well as on the Fuehrer's approval of 
the French proposal to use 3 French submarines for supplying the 

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CONFIDENTIAL 
14 Aug. 1942 

unoccupied part of Madagascar. For details see War Diary, Part C, 
Vol. VIII. 

VI. Report by the Chief, Operations Branch, Naval Staff Operations 
Division : 

— ~ .4 

1. The question of giving up the German positions on Crete 
has become acute in' view of the fact that the Italians proposed to 
the Armed Forces High Command that they take over the entire island. 
They argue that the progress of operations in North Africa will 
make it necessary to assign large Italian troop contingents to 
Crete and this, in turn, calls for the establishment of a corps 
headquarters on that island. The Armed Forces High Command Opera- 
tions Staff intends to use delaying tactics until the arrival of 
Italian troops makes a decision inevitable. According to a com- 
munication from the Permanent Representative of the Commander in 
Chief, Navy at the Fuehrer Headquarters, the Fuehrer showed little 
inclination to change his dissenting opinion on this matter when 
the question of Crete- was discussed at the conference on the sit- 
uation, although Vice Admiral Kran eke set forth the Naval Staff's 
views on the subject. The Chief, Naval Staff will raise the issue 
again at his next report to the Fuehrer. 

2. The Commanding Admiral, Group South has informed Antonescu 
about the ordered reorganization of the naval operations head- 
quarters in the Rumanian area; this report is being submitted. The 
German Ambassador in Bucharest has asked for a copy. The Command- 
ing Admiral, Group South will comply with the request, making sure 
that the Foreign Office does not prematurely notify the Armed 
Forces High Command or the Fuehrer. ' 

3. According to information from Admiral Nomura, the 
Japanese do not intend to launch operations against Siberia. This 
information should not be taken as absolutely reliable, because 
experience has proved that Admiral Nomura is by no means always 
aware of all plans of the Japanese High Command. 

4. The brief report on the disagreements in the question of 
transports in the Black Sea area is recorded in War Diary 12 and 
13 Aug. 

5. According to a presumably erroneous report from the Air 
Force Operations Staff, the African Panzer Army has already started 
its further attack operations. 

6. Group North has very grave doubts as to the facts con- 
cerning convoy PQ 18. v Either, as reported by the press on 10 Aug., 
the convoy has already entered its ports of destination, proceed- 
ing unnoticed under the cover of fog via the shortest route — a 
possibility which the Naval Staff considers rather unlikely — or 
the first and only location report by submarine U M 407 H was er- 
roneous. Group North has issued directions to the Admiral, Arctic 
Ocean and the 5th Air Force suggesting the following methods for 
intercepting the convoy with at least some amount of certainty: 

a. A constant submarine patrol should be posted in the Den- 
mark Strait at the ice boundary, extending as far to the west asl 
possible. 

b. The patrols off the Olga Strait and southwest of Spits- 
bergen are to be withdrawn. 

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CONFIDENTIAL 
14 Aug. 1942 

c. All available submarines in the Harstad-Kirkenes area, 
including those provided for operation Sunderland" and for mine 
operations, should be held ready to depart. 

d. Single long-range fighters equipped with radar should 
make additional reconnaissance flights over the Bear Island area. 

Group North gives its authorization for starting operation "Wunder- 
land" on 15 Aug. 

The Fuehrer was informed of this operation by Vice-Admiral Krancke 
and did not object. The air reconnaissance which is to precede 
the operation is already under way. 



Special Items ; 

I. The Naval Liaison Officer to the Army High Command has sub- 
mitted the answers of the 18th Army and Group North to the Naval 
Staff's request for investigation of the chances of an artillery 
attack on Russian light naval forces in the Kronstadt Bay harbors. 

(See War Diary 17 Jul. and 10 Aug.). The answer is that artillery 
fire with air observation, which appears doubtful in view of the 
strong Russian anti-aircraft defenses, can only be successful if 
large quantities of ammunition are employed in the operation. Un- 
observed fire is not very promising either, since the targets are 
small. The probability of hitting a single submarine has been 
calculated at 0.96^ per 100 rounds. An air attack promises more 
success. If a special allocation of ammunition can be obtained, 
flat-trajectory fire from heavy artillery could support the op- 
eration by holding down the anti-aircraft fire. 

II. An intelligence report from Sweden of 30 Jul. contains the 
following statements about the establishment of a second front and 
other fronts: 

"It was learned from a very reliable source that for about the last 
8 weeks discussions have been under way in England between the 
U.S.A., Great Britain, and Russia about the establishment of a 
second front and possibly additional fronts. "The main points in 
the plan are reported to be the following: 

"1. Energetic action against Finland. 

"2. Landings in northern Scandinavia for the purpose of 
cutting communications between Finland on the one hand and Nor- 
way and Sweden on the other. 

"3. Attacks by waves of planes on French localities on 
which an agreement has been reached with France in Switzerland. 

"4. Delivery of arms to the French, Belgian, and Dutch pop- 
ulations in the occupied area in preparation for Anglo-American 
landings. 

"The discussions revealed considerable differences of opinion. 
The plans worked out by the staffs are being examined by a com- 
mittee of the Anglo-American and Russian Army High Commands. It 

-156- 



CONFIDENTIAL 
14 Aug. 1942 

Is taken for granted that work on the details of the plans will 
continue all through August so that the establishment of a second 
or any additional fronts cannot be expected before September. It 
is said that materiel required for these operations is not yet 
available in sufficient quantity. Also the underground air bases 
established in southern England are said to be still insufficient- 
ly developed for this task." 

It is to be assumed that these purely military pre- 
parations are being carried out regardless of the 
political decision concerning the establishment of 
additional fronts in Europe. 



Situation 14 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation ; 

South Atlantic : 

According to a Daventry report, Allied planes encountered 
a German warship in the South Atlantic. The report reads as fol- 
lows: "The pursuit seems- to have started on the evening of 11 Aug. 
when the cruisers picked up distress signals from a ship under at- 
tack some 1,000 miles east of Rio de Janeiro. As soon as the 
cruisers appeared on the scene, the German warship broke off her 
attack and fled. The cruiser-based planes took up the pursuit and 
succeeded in spotting the warship for a second time." 

At the same time newspapers, including the London Times and the 
New York Times , were spreading the news that U.S. naval forces, 
supported by planes, have engaged in a systematic search for a Ger- 
man warship in the South Atlantic. As previously reported by our 
radio intelligence, no British naval forces were available for 
rendering aid to the British steamer DALHOUSIE to which all these 
reports undoubtedly refer. According to the short signal received 
at 2156, ship "23" has in the meantime reported capturing the DAL- 
HOUSIE. 

2. Own Situation : 

In the above-mentioned short signal, ship "23" also re- 
ported that she was shifting her operations area to the large 
quadrant GM. 

The Naval Staff confirmed the message via Radiogram 0100 of 15 
Aug. 

Since nothing unusual has since been observed and more than 3 days 
have elapsed between the start of the pursuit and the date of the 
short signal, it may be concluded that the' situation for ship "23" 
is clear for the time being. However, a stricter surveillance of 
the South Atlantic is to be expected. The resulting consequences 
must be taken into account. 

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CONFIDENTIAL 
14 Aug. 1942 

All vessels In foreign waters were informed about the enemy re- 
ports via Radiogram 1907. Radiogram 2301 contains other enemy- 
reports, further information about the Freetown report of 5 Aug. 
on the sinking of a British steamer by a PT boat, and the state- 
ment that the capture of the GLOUCESTER CASTLE by ship "28" 
might offer an explanation for the Freetown report. Further in- 
formation on the enemy situation v/as issued via Radiogram 0415. 



II. Situation West Area 

1. Enemy Situation ; 

According to an intelligence report from unoccupied ■ 
France and Spain received via Paris dated 14 Aug., an all-out 
attack of strong enemy forces on German submarine bases on the 
Atlantic coast is pending. 

2. Own Situation : 

Atlantic Coast : 

The Air Force Operations Staff reports that on 13 Aug. 
a German BF 110 plane shot down a British bomber over the Bay of 
Biscay. 

No incidents occurred in connection with the naval situation. 

Channel Coast : 

At 0145 a German convoy sighted 5 enemy motor gunboats 
off Cape Gris Nez. When fired upon by a patrol vessel, the PT 
boats turned away. A simultaneous long-range artillery attack 
resulted in 4 hits in the midst of the convoy, so that it may be 
possible that the motor gunboats were observers for the artillery. 
(See Telegram 1850.) 

From 0315 to 0325 a force of 2 patrol vessels, "707" and "704", 
had an engagement with 2 enemy motor gunboats off Jersey. After 
receiving 15 observed hits, the motor gunboats withdrew in 
southeasterly direction. Our vessels suffered light damage and 
casualties. (See Telegram 1740.) 

Mine operations of the 4th and 5th PT Boat Flotillas as well as 
the transfer of the 2nd PT Boat Flotilla to Ijmuiden and execu- 
tion of mine operation "Bonifacius", are set for the night of 
14 Aug. 

Operation "Bonifacius" is one of the mine-laying operations planned 
by Group Vilest in accordance with a suggestion by the Naval Staff 
(see War Diary 4 May) as a flank cover which would make the Channel 
routes safe for our vessels and protect our convoys from enemy 
motor gunboats and mines. The minefields to be laid are "Caesar 
I", "Caesar II", "Bonifacius", "Bruno I", "Bruno II", "Klara", 
"Anton I", "Anton II", and "Fritz". They will be located in the 
center of the Strait of Dover. 

3. Special Items : 

a. Upon the report by the Chief of the 14th Subchaser 

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CONFIDENTIAL 
14 Aug. 19 42 

Flotilla about its engagement with enemy motor gunboats and gun- 
boats off Cape Gris Nez on the .night of 20 Jul. (see War Diary, 
21 Jul.),' the Commander in Chief, Navy expressed his special 
recognition to the Chief of the Flotilla, Lt. Comdr. Wunderlich 
and to the captain of subchaser "1415", Lt. Perleberg. 

b. Group West agrees with the views of the Naval Staff con- 
cerning enemy landings in the west area, as set forth in its sit- 
uation* report (see War Diary 20 Jul.). The Group reports that the 
Army has in the meantime received such large reinforcements that 
every submarine base, for example, will be defended by one division, 
which can be reinforced by one or more strong reserve tank units 
within a very short time. 

The Air Force, too, has received reinf oroements . In view of these 
facts and of the daily progress in the construction of field forti- 
fications, the Commanding General, Armed Forces, West is now con- 
vinced that even if the enemy succeeds in gaining a foothold in 
one place or another,- he will be throv/n out again very soon. The 
Commanding General, Armed Forces, West therefore fully agrees with 
the Commanding Admiral, Submarines that no naval installations 
must be destroyed without prior consultation with the Group Com- 
mand and the Commanding Admiral, Submarines. The Navy has almost 
exhausted the possibilities of improving its defense measures 
against enemy landings. In the opinion of Group West, it is 
necessary not only to assign another torpedo boat flotilla and an- 
other motor mine sweeper flotilla to the west area, in addition to 
the 6th Motor Mine Sweeper Flotilla, but also to introduce certain 
new measures in the radar and the radio communication intercept 
services, to supply heavier armor-plating and more arms for the' 
forces of the Commanding Admiral, Defenses, West, to rearm the PT 
boats, etc. The Naval Staff has informed its Quartermaster Divi- 
sion and Communications Division of these requests and has asked 
them to take the necessary steps. 

At this opportunity, Group West calls the attention of the Naval 
Staff to the difficult fuel situation which prohibits many opera- 
tions otherwise desirable for purposes of reconnaissance and de- 
fense of the coastal waters. The laying of the flanking mine- 
fields has already made it necessary to draw in advance on the 
contingents reserved for the coming months. The Naval Staff Opera- 
tions Division will examine the fuel question, as requested by 
Group West, in cooperation with the Naval Staff Quartermaster Divi- 
sion. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : • 

Enemy Situation ; 

No noteworthy reports have been received. 

Own Situation : 

Enemy air operations on the night of 13 Aug. lead to the 
assumption that mines were dropped off the Dutch coast, as well as 

-159- 



CONFIDENTIAL 
14 Aug. 1942 

off the German Bight coast. 3 grpund mines were swept north of 
Terschelling and 1 was swept south of Den Helder. Toward noon, 
enemy planes damaged lightship "5" on the Wester-Schelde. The 
ship has been towed in. Naval anti-aircraft guns shot down 2. 
Spitfires. Execution of mine operation "SW 102" by the 8th Motor 
Mine Sweeper Flotilla is set for the night of 14 Aug. Convoy op- 
erations proceeded as planned without incidents. 



2. 



Norway, Arctic Ocean ; 

Enemy Situation : 

According to an intelligence report, on 5 Aug. a convoy 
of 15 loaded ships entered Reykjavik. Radio Intelligence inter- 
cepted messages from 4 vessels in the southern and 2 in the 
northern approach to the Gorlo Strait. 

Own Situation : 

Mine-sweeping and convoy operations In the area of the 
Commanding Admiral, Norway proceeded as planned, with no incidents 
to report. 

On 12 Aug. an enemy battery on the Rybachi Peninsula unsuccessfully 
fired on a convoy proceeding from Petsamo to Kirkenes. The route 
between Kristiansand South and Stavanger is again open to shipping. 
Additional findings about the steamer GEORG L. M. RUSS lead to the 
assumption that she sank as a result of a submarine attack. 

For the directive of Group North to the Admiral, Arctic Ocean, based 
on its estimate of the situation v/ith regard to convoy PC; 18, see 
Conference on the Situation with the Chief, Naval Staff. The present 
disposition of the submarines for an attack on convoy PQ 18 is being 
discontinued. At noon, the submarines began to withdraw at most 
economical cruising speed. Submarines U "457" and U "403" have 
been ordered to occupy positions in the Denmark Strait. 2 sub- 
marines will be posted in the area south of Spitsbergen, 1 north of 
Novaya Zemlya, 1 for patrolling the Matochkin Shar, and 1 for 
patrolling the Kara Strait. Durings its attempt to refuel sub- 
marine U "255", the BV "138" developed engine trouble and had to be 
towed away. 



IV. Skagerrak. Baltic Sea Entrances, Baltic Sea 

On the night of 13 Aug., numerous enemy planes dropped mines 
in the entrances and the western part of the Baltic Sea. 

At 0630 a tug sank southwest of the Drogden light buoy as a result 
of a ground mine. At 1135 the steamer POLLUX struck a mine in the 
mined area off Swinemuende and is being towed in. The transport 
from Aalborg to Oslo has departed. The transports from Danzig to 
Finland are proceeding as scheduled. 

An enemy submarine unsuccessfully attacked a convoy en route be- 
tween Helsinki and Reval. .Submarine chase is under way. Mine- 
sweeping and convoy operations in the area of the Commander, Mine 
Sweepers, Baltic Sea are proceeding according to plan without in- 
cidents. 

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CONFIDENTIAL 
14 Aug. 1942 

The Commanding Admiral, Baltic Countries reports that on the night 
of 10 Aug. 8 TMB mines were laid in the Kronstadt Channel. The 
operation was executed without enemy interference or observation. 
For details see Telegram 1605. 



V. Merchant Shipping 

1. During the week from 26 Jul. to 1 Aug. the ore shipments 
from Lulea dropped further, reaching 146,185.9 tons, the year's 
lowest figure for weekly ore shipments. Time and again there we^e 
not enough ships. 3 German and 25 Swedish ships were used for 
these shipments. 

2. The British Admiralty reports that 23 British shipyards 
which were closed during the depression have been reopened. A 
discussion of this report, as well as of other foreign shipping 
news, is contained in Brief Report No. 25/42 of the News Series 
"Foreign Merchant Shipping". 



VI. Submarine Warfare 

1. Enemy Situation : 

A bombing attack on a periscope was reported from* a lo- 
cation 220 miles south of Iceland. A submarine sighting report 
was intercepted from 330 miles west of Porcupine Bank. 

Off the American east coast, submarine sighting reports were in- 
tercepted from the area northwest of Cape Breton and 230 miles 
southeast of Halifax. 

2. Own Situation : 

For the regrouping of the submarines stationed in the 
north area see Situation, Arctic Ocean. 

So far, group "Loss" has failed to intercept the convoy in the 
North Atlantic which was located by the radio intercept service. 
Submarine U "705" sighted a northwestbound convoy in quadrant 
AL 4812 but lost sight of it in a rain squall. Submarine U "256" 
apparently met part of the convoy with a destroyer in quadrant 
AL 4493 but failed in her attack on the vessels. The operation 
is being continued. 

Submarine U "598" intercepted a westbound convoy of 15 tankers in 
quadrant DN 4781 and launched a surface attack on the vessels, 
scoring 2 hits. The submarine was unable to observe further 
effects of the attack. 

6 submarines operating in the, South Atlantic are being assembled 
into Group "Bluecher". The group is to take up attack positions 
in the area extending from quadrant CE 93 to quadrant CF 85 and to 
-proceed southward in patrol-line formation in order to intercept 
unescorted ships and convoys. 

-161- 



CONFIDENTIAL 
14 Aug. 1942 

Submarine U "331" departed from Spezia to the western Mediterranean 
for operations against the main group of the returning enemy forces. 
Submarines U "73" and U "205" have been assigned waiting positions 
in quadrants CJ 76, 78, and 75. In the eastern Mediterranean, sub- 
marine U "83" is concentrating her operations on the area north of 
Port Said, and submarine U "73" on the area east of the longitude 
of quadrant CP 5146 and north of the latitude of quadrant CP 5298. 
For further details see supplement to the submarine situation in War 
Diary, Part B, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

During the day our air forces carried out armed recon- 
naissance missions and fighter-bomber raids over localities on the 
coast. Ipswich was raided on the night of 14 Aug. Only a few in- 
cursions were made by enemy planes over Norway, Holland, and Bel- 
gium. 

2. Mediterranean Theater : 

No reports have so far been received about any planes 
shot down during the attack on the enemy convoy. 

Reconnaissance missions were flown over the central and eastern 
Mediterranean. 

Photographic reconnaissance was carried out over harbors in the 
eastern Mediterranean. 

Air raids were made on enemy airfields in North Africa. Enemy 
fighters from Malta have appreciably intensified their activity. 

3. Eastern Front : 

58 enemy planes were shot down by the forces support- 
ing the Army operations. In the Black Sea, 2 coastal vessels were 
sunk and 1 small tanker was damaged. During the enemy air raid on 
airfields of the Kerch Peninsula in the night of 12 Aug. anti- 
aircraft guns brought down 21 of the attacking planes. 



VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation : 

At 1730 a battleship of the RODNEY class and an air- 
craft carrier of the ILLUSTRIOUS class, as well as 6 destroyers, 
entered Gibraltar, According to an intelligence report from Spain, 
the carrier was heavily damaged on both sides. The FURIOUS left 
dock at 2035. In the night of 13 Aug. the escort forces return- 
ing from Malta passed through the Strait of Sicily in westerly 
direction. Air reconnaissance spotted them repeatedly while they 
were proceeding at high speed off the Tunisian and Algerian coast. 
At 1310 the force, consisting of 2 cruisers and 5 destroyers, was 
located 32 miles northwest of Cape Bougaroun. At 1110 another 

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CONFIDENTIAL 



14 Aug. 1942 



destroyer which was returning alone was located 30 miles east of 
La Galite. At 1000 Italian air reconnaissance reported that the 
force, with an aircraft carrier, vras heading west 30 miles north 
of Cape de Fer. This would mean that the fourth aircraft carrier, 
which was not located for quite some time, has been intercepted. 
Another unidentified vessel proceeding alone on a westerly course 
was sighted by an Italian submarine 62 miles north-northeast of 
Cape Serrat at 2050. In the morning German air reconnaissance 
sighted a large merchant ship in tow and a vessel which v/as assumed 
to be an aircraft carrier but was definitely not the UNICORN 40 
miles west-southwest of Malta. Details are lacking. At 1630 a 
German plane sighted a large ship with no superstructure, as well 
as another large ship and 2 small vessels, proceeding at low speed 
on an easterly course in approximately the same area. This force 
was later spotted for a second time 16 miles west-southwest of 
Malta. Photographic reconnaissance carried out over Valletta at 
1830 showed apparently no additional ships in the harbor. How- 
ever, the reconnaissance was incomplete since part of the harbor 
was concealed by a smoke screen. It might be that a damaged 
tanker entered the harbor in the meantime. 

According to a French report to the German Armistice Commission, 
France 500 survivors from the cruiser MANCHESTER and from 3 
tankers were set ashore near Cape Bon. They stated that the 
MANCHESTER was sunk during the night of 12 Aug. The stern of the 
aircraft carrier which had been sighted north-northeast of Cape 
Blanc on the afternoon, of 12 Aug. and v/as assumed to be the WASP 
was in flames. Some time afterv/ards the fire appeared to subside. 
No further reports concerning the whereabouts of this vessel have 
been received. ' 

According to a press report from Algeciras, the EAGLE had 22 
fighters and 8 single-engined biplanes on board. The same source 
reports the sinking of the British destroyer WRESTLER. According 
to a Reuter report from Cairo, U.S. bomber crev/s contend that on 

10 Aug. they damaged 3 Italian cruisers riding at anchor in the 
vicinity of Navarino.. 

As for the eastern Mediterranean, in the morning German air 
reconnaissance sighted 1 cruiser, 7 escort vessels, 2 tankers,' and 
3 steamers on a southerly course 25 miles north-northeast of Port 
Said, as well as a large steamer lying to just east of Port Said. 
According to an Italian sighting report, a submarine was west of 
Crete. In addition to the French vessels the number of which is 
unchanged, photographic reconnaissance showed 6 escort vessels, 

11 small warships, 1 hospital ship, 2 tankers, and 10 steamers in 
Alexandria and 1 warship dummy, 2 cruisers, 4 destroyers, 6 sub- 
marines, 1 tanker, and 27 steamers in Port Said. 1 cruiser, 4 
destroyers, 6 submarines, 55 steamers, 9 tankers, and 5 trans- 
ports were in Suez. Merchant tonnage has increased by about 
110,000 GRT since 8 Aug. 

2. Own Situation, Mediterranean : 

In the night of 13 Aug., 2 PT boats were sent to operate 
against the force of light vessels returning west. Due to engine 
trouble, the PT boats Tf/ere unable to reach their area of operations 
in time and gave up the attack. 

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CONFIDENTIAL 
14 Aug. 1942 

On the afternoon of 13 Aug. enemy submarines torpedoed the Italian 
cruisers BOLZANO and ATTENDOLO off the Lipari Islands. The 
ATTENDOLO has arrived in Messina. The BOLZANO was beached and will 
be towed into port. 

An Italian destroyer has been sent into the area south of Pantel- 
leria for operations against damaged enemy vessels. 2 damaged 
Italian PT boats were beached south of Cape Bon. 13 Italian sub- 
marines are in the operations area. An Italian PT boat reports 
scoring a torpedo hit on a destroyer belonging to the enemy escort 
force returning from Malta off Cape Bon. 

At 1800 2 boats of the 3rd PT Boat Flotilla were sent from Porto 
Empedocle for an attack on the apparently damaged enemy vessels 
sighted southwest of Malta. 

In the night of 13 Aug. enemy planes carried out heavy raids on 
Tobruk and Marsa Matruh without damaging military or naval in- 
stallations. 

The Italian Liaison Staff with the German Naval Staff has trans- 
mitted a list of successes scored by the Italian Navy in its op- 
erations against the convoy force. The Italian Navy claims the 
following successes: the sinking of the cruiser MANCHESTER by a 
motor torpedo boat, the torpedoing of the FURIOUS and of 3 
cruisers by submarines, the torpedoing of another cruiser by a 
motor torpedo boat, the sinking of 1 tanker and 2 steamers by sub- 
marines and of 2 tankers by subchasers, as well as the torpedo- 
ing of an unidentified vessel by a submarine and of 2 steamers, 
one of them 18,000 GRT, by subchasers. For copy of the communica- 
tion see Telegram 1800. 

3. Transport of Supplies to North Africa : 

The transport of supplies to North Africa has been re- 
sumed. The motor ship RAVELL0 departed from Taranto and the motor 
ship LERICI left Brindisi, both bound for Benghazi. 

The tanker STIGE and the steamers SP0RTIV0 and BIANCHI left Crete 
for Tobruk. The steamer F0SC0L0 left Athens for Benghazi. 

Transport of supplies along the North African coast proceeded as 
planned, with no incidents to report. 

959 tons were unloaded in Tobruk on 11 Aug. and 1,109 tons on 12 
Aug. 

4. Area Naval Group South : 

Aegean Sea : 

The destroyer ZG "3 M departed from Navarino for Suda for 
an escort assignment but had to return to port because of engine 
trouble. 

All restrictions on movements of unescorted small vessels, with the 
exception of passenger vessels, have been lifted. 

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CONFIDENTIAL 
14 Aug. 19 42 

Black Sea : 

Enemy Situation : 

An intelligence report from a French source states that 
on 12 Aug. 15 Russian warships of various types, including tankers, 
were interned by the Turks in the harbor of Samsun. 

Own Situation : 

No incidents were reported from the Black Sea. 

Special Items : 

a. Group South has considered the possible action of 
the Russian Black Sea fleet after the Germans have occupied the 
coast up to Tuapse and after the evacuation now in progress has been 
terminated. Group South has issued the necessary directives to 
the subordinate commands, and requested the Air Force to take the 
necessary steps. In the opinion of Group South, most likely the 
ships will be disarmed, the guns and the personnel employed in land 
operations, and the vessels /will then be sunk. The group assumes 
that the submarines will in any case remain in the Black Sea and 
will be able to continue operations for another month or two after 
the occupation of the last Russian base. The Group does not ex- 
pect the Turks to interfere with any attempt of the Russian mer- 
chant fleet to break through into the Mediterranean. 

In view of this situation, Group South considers it necessary^ that 
the Air Force concentrate its attacks on Poti and Batum, that' photo- 
graphic reconnaissance be carried out continuously in order to 
discover the Russian intentions in time, and that air reconnaissance 
be extended for the same purpose, as well as for the purpose of 
protecting our transports of supplies. When the time comes, German 
and Italian naval forces should be prepared to intensify their 
operations from Tuapse. For copy of the corresponding telegram 
see l/Skl 19958/42, Gkdos. in War Diary, Part C, Vol. XlVa. 

In connection with the same problem, Group South believes that Ad- 
ditional German minefields in the approaches to the straits will 
be effective only if laid in Turkish territorial waters. The task 
can therefore be carried out only in agreement with Turkey and at 
her request. The order for the naval and air forces to attack the 
Russian warships if they try to break through holds even if the 
attack is made within Turkish territorial waters. Group South ex- 
pects that, in case the Russian vessels break through the straits, 
the necessary forces will be placed at the disposal of the Admiral, 
Aegean Sea in time and planes will be sent into action, primarily 
in the Black Sea, in adequate numbers. For the time being it is 
not intended to redistribute our forces In the Black Sea with a 
view to these anticipated developments, in order not to interfere 
with the main tasks. 

The Naval Staff will take a stand on the matter. 

b. In reply to the request of Group South for mine-sweeping 
planes against magnetic mines in the Sea of Azov, the Naval Staff 
asks the Group to reconsider once again whether, in view of the 

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CONFIDENTIAL 
14 Aug. 1942 

small number of available planes of this type, the request is neces- 
sary and justified. The Naval Staff points out that the mine- 
sweeping planes must not be used against German magnetic mines, that 
magnetic mines with acoustic firing devices cannot be easily swept, 
and that, under certain conditions, it might be possible to have 
specialists among the war prisoners remove the Russian mines with 
the aid of such means as are available. (See Telegram 1027.) 

c. Without making reference to the above directive, Group 
South again requests that several mine-sweeping planes be im- 
mediately allocated in order to speed up the sweeping of Russian 
magnetic mines in the Caspian Sea and off the east coast of the 
Black Sea. In this new request, Group South refers to a statement 
by the 4th Air Force, according to which mine-sweeping planes can 
be obtained from the Commander in Chief, Air Force immediately upon 
request. 

It is inconceivable how the 4th Air Force could make 
such an incorrect statement. 

d. In reply to the Naval Staff's directive mentioned under 

b, Group South quotes a report by the Naval Shore Commander, Ukraine, 
stating that the presence of magnetic mines has been confirmed by 
a number of' eye-witnesses, and that, in addition, acoustic mines 
were laid during the last mine-laying operations by warships during 
the day and night of 8 Aug. The latter statement is confirmed by 
the fact that so far the mine hits on the landing craft and Siebel 
ferries occurred aft. Group South has ordered experts to investi- 
gate the matter. 



IX. Situation East Asia 

The Japanese Headquarters issued an official communique about 
the losses suffered by the enemy off the Solomon Islands up to 14 
Aug. Sunk: 13 British and American cruisers, 9 destroyers, 3 sub- 
marines, 10 transports. 

Heavily damaged: 1 cruiser, 3 destroyers, 1 transport. 

Japanese losses are: 2 cruisers damaged, 21 planes lost. 

The U.S. Navy Department reports that the operations in the Solomon 
Islands area are being continued. According to press reports from 
MacArthur's headquarters, the Allied fleet is engaged in very heavy 
fighting. 



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CONFIDENTIAL 
14 Aug. 1942 

X. Army Situation 

1. Russian Front : 

Army Group A ; 

South of Krasnodar, our troops forced a crossing over 
the Kuban River at 4 points. The large oil field near Khadikhenskaya 
was- cnossed. Slovak divisions have pushed forward as far as the 
Krasnodar-Khadikhenskaya oil pipeline. The upper course of the 
Byelaya River has been reached. 2 panzer divisions of the force 
advancing toward the south were diverted to the east. The 1st 
Mountain Division reached Teberda and seized Uchkulan and Kursuk 
at the fooc of the Elbrus Mountain. Parts of the 23rd Panzer Divi- 
sion occupied Georgievsk and advanced, together with other units, 
southward as far as Baksansk. 

On the front of 'Army Group A, the enemy lost 309,000 prisoners, 522 
tanks, 550 guns, 637 anti-tank and 141 anti-aircraft guns between 
1 Jul. and 10 Aug. 

Army Group B ; 

Attacks against the right wing of the 4th Panzer Army 
from the direction of Lake Tsatsa were repulsed, as were attacks 
from the north on German and Rumanian positions. The XXIV Panzer 
Corps is being brought up to .reinforce the right wing of the 4th 
Panzer Army. In - the 5th Army area, the Italian motorized division 
was replaced by the 79th Infantry Division. The enemy renewed his 
heavy attacks against the eastern and northern fronts of Voronezh. 
After temporary enemy penetrations, the attacks were repulsed. Partic- 
ularly heavy were the attacks southeast of Yelets where a penetra- 
tion had to be sealed off. 

Central Army -Group : 

i 

The thrust toward Byelev and the operation in the Sukhin- 
ichi area were slow in gaining ground against strong enemy resist- 
ance. East of Vyazma the enemy again penetrated into our positions. 
Only little ground could be gained by our thrust east of Gzhatsk. 
East of Sychevka, superior enemy forces succeeded in pushing for- 
ward as far as the region of Karmanov. Northeast of Rzhev, superior 
enemy forces penetrated our withdrawn positions, and succeeded in 
reaching the Rzhev-Staritsa road at one point. In view of the un- 
broken offensive power of the enemy, the situation at the Central 
Army Group is extremely critical. 

Northern Army Group ; 

Enemy attacks against the land bridge of the II Army 
Corps south of Staraya Russa were resumed from the north and the 
south. From the south the enemy succeeded in penetrating our 
lines, necessitating a counterattack on our part. 

2. Finnish Front : 

Isolated enemy reconnaissance thrusts on the southeastern 
and northeastern fronts were shattered. At the Loukhi and Kandal- 1 
aksha sectors the enemy is digging in. 

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CONFIDENTIAL 
14 Aug. 1942 

3. North Africa ; 

In the night of 13 Aug. advance enemy scout troops were 
repulsed at the northern sector of our front. 



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CONFIDENTIAL 
15 Aug. 1914.2 

Items of Political Importance 

No official reports are available with regard to the question of 
a second front in Europe and the visit of the Anglo-American 
statesmen to Moscow in this connection. It seems to he certain 
that Churchill travelled via Cairo and Teheran. According to the 
Dally Mail , the British consider that sending the 10th Army to 
the Caucasus would be an. act of desperation which would deprive 
the forces in Egypt of their last support. 

Concerning the Russo-Japanese relations , an Informant reports that 
the usual border clashes in Manchuria have decreased considerably, 
a fact which is being interpreted as a sign of Russia's yielding 
attitude, which is understandable enough. Although Japanese 
military preparations in Manchuria are well advanced,' it is not 
expected that Siberia will be attacked this year. 

The situation in India does not show any decisive developments. 

France ; 

The Government categorically denies an assertion of a foreign 
source that Petain would issue a declaration about France's 
position in case of an Anglo-American landing on French soil. 

It is obvious that such declarations will not be 
issued before it has become clear what turn the 
events are going to take J 

U.S.A. : 

Roosevelt's message to Churchill on the anniversary of the Atlantic 
Charter reemphaslzes that the Charter agreement and the realization 
of its principles will remain the basis of Allied policy. 

Chile : 

The President of Chile will visit the U.S.A. in October. 



Special Items : 

I. During the conference between the Chief of Staff, Naval Staff 
and Admiral Nomura, the latter touched upon the strategic problems 
in the Indian Ocean, saying that he expects Japan to be able to 
start operations in the eastern part of the Indian Ocean toward 
the end of August or In September and then carry them Into the 
western Indian Ocean. The Admiralty in Tokyo attributes to the 
Indian Ocean as much importance as does the Naval Staff. Admiral 
Nomura hinted that the operational tasks would be divided as follows: 
India: Japanese sphere; Near East: German and Italian sphere; 
all three powers would cooperate strategically. 

The Chief of Staff, Naval Staff pointed out that a common front 
in the Indian Ocean is the focal point of the over-all strategy in 
this war. 



-I69- 



CONFIDENTIAL 



15 Aug. 191+2 



As for the supplies which submarine I W 30 M Is supposed to take 
along, the Japanese Admiral requested that finanolal problems and 
any other formalities be set aside. 

For minutes of the conference see l/Skl I opa I590A2 Gkdos. Chefs. 
in %ar Diary, Part C, Vol. XV. 

II. Group South transmitted the following statements made by the 
French Naval Attache in Sofia to the Chief of Staff, Group South: 

1. The French Admiralty believes that the Japanese lost, 
among other ships, I4. aircraft carriers In the battle off Midway, 
which means that the balance of power in the Pacific has been 
restored. 

2. The French Admiralty assumes that the British will take 
steps to prevent the maneuverability of the French fleet stationed 
in Alexandria, unless Egypt Is occupied very quickly by a surprise 
move. 

3. The French Admiralty believes that it has certain infor- 
mation indicating that the Americans are in possession of a very 
effective torpedo plane equipped with a new type of torpedo. The 
French Naval Attache has no knowledge of the details of this new 
weapon. It may be that the torpedoes are equipped with acoustic 
warheads. 



Situation 15 Aug. 19^2 

I. War in Foreign Waters 

1. Enemy Situation : 

The Naval Attache in Buenos Aires reports that on 9 Aug. 
the steamer QUEEN ELIZABETH carrying troops in khaki arrived in 
Rio de Janeiro. 

An intelligence report supplements the information about the de- 
parture of a convoy from Freetown in the direction of Cape Town 
on 1 Aug., stating that the escort consisted of 2 battleships, 
2 destroyers, and 1 aircraft carrier. 

Indian Ocean : 

According to an intelligence report from Athens, 2 large 
convoys, one British and one American, carrying troops and tanks 
are expected to arrive in the Middle East between 20 and 30 Aug. 
It is not yet sure whether the U.S. convoy will proceed to the 
Red Sea. 

2. Own Situation : 

In reply to an inquiry by the Naval Staff, the Naval 
Attache in Tokyo communicated the ports of departure and destination 
and the cargo of the HERBORG and the MADRONO (see Telegram 1000). 

The Naval Staff transmits sailing orders for the auxiliary supply 



-I70- 



CONFIDENTIAL 
15 Aug. 1942 

ship PASSAT to Group West. The ship is to depart from the harbor 
of western France during the new-moon period in September upon 
special orders from Group West. She is to supply ship "23" and, ■ 
if possible, "28". Thereupon she is to get edible fats from 
Japan and bring them to western France. At 30° W the Naval Staff 
takes over command. 

For copy no. 4 of the sailing order see l/Skl I k 1553/42 Gkdos. 
Chefs, in War Diary, Part C, Vol. I. 

The Naval Staff transmits to the High Command of the Italian 
Naval Forces in the Atlantic (Betarom) and to Group West the sailing 
order and recognition signal table for the Italian blockade -runnel 
PIETRO 0RSE0L0. The ship is to bring her cargo to Japan and to re- 
turn to western France with a cargo of essential materials for 
Italy and Germany. 

Group West will determine her date of departure. The Naval Staff 
will take over command at 30° W. 

For copy no. 4 of the sailing order see l/Skl I k 1528/42 Gkdos. 
Chefs, in War Diary, Part C, Vol. I. 

On the evening of 14 Aug. Daventry broadcast the following announce- 
ment in Dutch: 

"Allied cruisers encountered a German warship in the southern part 
of the Atlantic Ocean. A fierce battle ensued. The pursuit seems 
to have begun Tuesday late in the evening when the cruisers 'received 
distress signals from a ship attacked some 1,000 miles east of Rio 
de Janeiro. As soon as the cruisers appeared on the scene, the 
German v/arship broke off her attack and fled. Planes on board our 
cruisers took up the pursuit and succeeded in spotting the warship 
again. The battle continues". 

The Naval Staff does not think that the enemy has any indication 
of the whereabouts of the auxiliary cruiser. 

■i 

This information is being transmitted to ship "23" and to all 'ves- 
sels in foreign waters via Radiogram 1429, along with the following 
directive: 

The Naval Staff authorizes ship "23" to shift her operations area. 
It recommends a temporary withdrawal on account of the search 
undertaken by the enemy. The ship should act according to her own 
discretion, since she probably has a better knowledge of the enemy 
situation through her radio service than is at present available 
to the Naval Staff. 

The SCHLIEMANN has been ordered to depart immediately from her 
waiting area on a southeasterly course and to take up position in 
a. waiting area within a 250 mile radius of a point 8° farther south 
than point "Seide" and in the same longitude. 

Orders to this effect were sent to the CHARLOTTE SCHLIETvIANN via 
Radiogram 1832. ~ 

Radiogram 1914 informs all vessels in foreign waters that the 
French have been authorized to use 3 Frenr" submarines from Dakar 
for maintaining contact with Madagascar, that the British 

-171- 



CONFIDENTIAL 
15 Aug. 1942 



fleet operation in the Mediterranean is nearing its end. 
The vessels are told that a comprehensive report will 
follow as soon as the facts can be surveyed. 

The German Armistice Commission, France communicates the 
positions of the French vessels via Telegram 1120, and the 
German Naval Command, Italy transmits the positions of 8 
Swedish ships via Telegram 2400. 



II. Situation West Area 

1. Enemy Situation : 

It is noticeable that rumors about enemy landings 
in the west area in the next few weeks or in the first half 
of September are again cropping up. Arcachon near Bordeaux, 
Les Sables d'Olonne near St. Nazaire, and La Panne near 
Ostend are mentioned as landing areas. It looks as if 
all these rumors were being spread on purpose. According 
to an intelligence report from Portugal, on 10 Aug. an 
Irish steamer sighted a southbound convoy consisting of 4 
troop transports, 5 destroyers, and 3 corvettes 400 miles 
south of Mizen Head (Ireland). The steamer saw German 
planes attack the convoy. 

2. Own Situation ; 

Atlantic Coast ; 

2 ground mines were swept off St. Nazaire and on 
the convoy route. 

Channel Coast ; 

The mine operation of the 4th and 5th PT Boat 
Flotillas in the night of 14 Aug. was executed according 
to plan. For brief report see Telegrams 0730 and 0733. 
The 5th PT Boat Flotilla had no encounter with the en- 
emy. One group of the 4th PT Boat Flotilla maintained 
contact with a force of enemy motor gunboats for a short 
while, but none of the opponents opened fire. 2 boats 
of the 2nd PT Boat Flotilla have transferred to Boulogne 
and 5 to Ijmuiden. Shortly after midnight a German con- 
voy en route from Boulogne to Dunkirk had an engagement 
with enemy PT boats off Cape Gris Nez and was also fired 
upon by the British long-range battery at St. Margaret on 



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CONFIDENTIAL 
15 Aug. 1942 



Cliff. The batteries "Todt", "Grosser Kurfuerst", and 
an Army battery returned the fire. It is also certain 
that a harbor patrol vessel west of Dunkirk succeeded in 
hitting 3 enemy motor gunboats approaching from the west. 
The enemy withdrew under a smoke screen without returning 
fire. For brief report see Telegram 1415. At 0340 an 
Army post south of Barfleur was attacked with hand gren- 
ades and small arms. Pursuit of the enemy in the dark- 
ness was unsuccessful. After dawn, footprints and a 
trail indicating the presence of some 6 men and a rubber 
boat were found on the beach. 

Mine operation "Bonifacius" was executed as planned. Mine 
operation "Akkord" is scheduled for the night of 15 Aug. 



III. North Sea, Norway, Arctic Ocean 
1. North Sea : 

. Enemy Situation : 

4 

The steamer and convoy traffic along the south- 
eastern and eastern coasts was as usual. 

Own Situation : 

Mine operation "Erasmus 102" was carried out on 
the night of 14 Aug. according to plan. 5 ground mines 
were swept off the Frisian Islands on 15 Aug. Convoy op- 
erations in the area of the Commanding Admiral, Defenses, 
North proceeded as scheduled. 

At noon enemy reconnaissance planes flew over the Wilhelms- 
haven and Oldenburg area. In the afternoon 36 enemy planes 
attacked vessels of the Rhine flotilla off Domburg. 1 ves- 
sel has been lost. 4 Spitfires were shot down. 

2# Norway, Arctic Ocean : 

Enemy Situation : 

Reconnaissance in the Arctic Ocean failed to yield 
any tactical results. 



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CONFIDENTIAL 
15 Aug. 19i+2 

Own Situation ; 

A Russian mine was swept southwest of Mageroe. A 
Russian rubber boat, presumably from the Russian submarine attacked 
off Kiberg on 10 Aug., was found, on 11 Aug, It is assumed that 
aerial mines were dropped in the Brei Sound. 3 Swedish ships author- 
ized to sail overseas departed from Krlstlansand South. Convoy 
operations in the area of the Commanding Admiral, Norway proceeded 
according to plan. 

The Fleet Commander has boarded the dispatch vessel HELA at 
Trondheim. 

With the summer drawing to a close and the nights growing longer, 
enemy commando raids against the Norwegian coast are again likely 
to occur. Even though the Commanding Admiral, Defenses, North 
does not attribute much importance to such raids, our prestige will 
suffer if the enemy succeeds In damaging our ships and destroying 
coastal installations, and this fact might in turn Induce the enemy 
to undertake the venture more frequently. The Commanding Admiral, 
Defenses, North has therefore called this point to the attention 
of all the offices under his command, reemphasizing the importance 
of systematic counteraction in all cases where the enemy attempts 
to harass us or to land troops. (See Telegram 151+0.) 

The unexplained sinking of the steamers BOLTENHAGEN and GEORG 
L. M. RUSS leads to the assumption that enemy submarines are 
using torpedoes that leave no bubble track. Group North has 
requested the Naval Staff to find out whether there are any 
data available to support this theory. 

The Naval Staff will issue the necessary instructions. 

Group North, acting in accord with the Admiral, West Norwegian 
Coast and the Commanding Admiral, Submarines, has ordered the 
former to issue new regulations for the escort of submarines 
on their departure route from Krlstlansand. For copy of the 
communication see l/Skl 20067/1+2 Gkdos. in War Diary, Part C, 
Vol. IV. 

Operation "Wunderland" ; 

In his estimate of ll+ Aug. the Admiral, Arctic Ocean 
considers that the conditions are favorable for undertaking operation 
"Wunderland". He does not expect that any enemy forces will ue 
encountered en route or in the operations area. Upon authorization 
by Group North, granted in the meantime, the Admiral, Arctic Ocean 
proposes to have the SCHEER take advantage of the poor visibility 
and depart with 3 destroyers of the 5 tn Destroyer Flotilla through 
the Vest Fjord, simulating a transfer to Trondheim. At dusk, 
the SCHEER would slip out of the Vest Fjord to the north out of 
sight of the coast. The departure from the Grimsoe area will de- 
pend on the situation. The destroyers will then return to Tromsoe 
for refueling. The fleet forces will be transferred to the Kaa 
Fjord where they will take up rendezvous positions according to 
directive from Group North as soon as the operation has been dis- 
covered by the enemy or shortly before the SCHEER sets out on her 
return voyage from the operations area. If there are reasons to 
expect enemy countermeasures, the operation will be discontinued. 



-I7I+- 



CONFIDENTIAL 
15 Aug. 191+2 

Therefore whenever an enemy plane flies over the ship she should 
report it. 

Since enemy submarines are presumably patrolling the area, Group 
North considers the departure through the Vest Fjord undesirable 
and recommends the Grimsoe area Instead. 

The Naval Staff has no objections, except that it 
might be better to leave the decision as to whether 
to continue the operation or to break it off to 
the ship's captain in order to avoid an unnecessary 
interruption of radio silence. 

Group North issues a supplementary directive to the Admiral, 
Arctic Ocean, that the patrol line spotted by air reconnaissance 
off the Kola coast on 11+ Aug. should be annihilated on the return 
voyage of the SCHEER. 

On the basis of the. radio intelligence report from Klrkenes, the 
Admiral, Arctic Ocean does not consider the enemy situation on 15 
Aug. clear enough for starting operation "Wunderland", and he 
therefore. Intends to wait a little longer. Group North, on the 
other hand, points out that every delay is harmful, and that the 
intercepted exchange of enemy radio messages can hardly be of any 
significance for the operation. The Group states that an early 
departure under the cover of darkness is desirable; if necessary, 
the ship should transfer during the first night and depart on 
the following night. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

The convoy en route from Aalborg to Oslo, with the steamer 
WUKL carrying men on leave, entered Oslo. Convoy and patrol opera- 
tions in the area of the Commanding Admiral, Defenses, Baltic 
Sea proceeded according to plan. 

The steamers WOLSTJM and LEVANTE carrying convicts and Russian war 
prisoners departed from the Baltic Sea en route to northern Norway. 

The Armed Forces High Command Operations Staff has directed that, 
instead of the 5th Mountain Division, the 3rd Mountain Division be 
transported from Norway to Finland by sea. The transport is to be 
speeded up by every possible means. 

Convoy operations in the area of the Commander, Mine Sweepers, Baltic 
Sea proceeded without incident • 

Enemy planes attacked a motor mine sweeper group 15 miles north- 
west of Hungerborg. The motor mine sweeper R "106" was sunk. 



V. Submarine Warfare 

1. Enemy Situation ; 

1 British vessel was observed 200 miles northwest and 

-I75- 



CONFIDENTIAL 
15 Aug. 19U2 

another one 100 miles south of Porcupine Bank. On 11 Aug. 
the Dutch submarine C "2I+" was located off Freetown. 

'2. Own Situation ; 

, 7 submarines departed from German bases and 2 from harbors 
In western France. 

SuSnferine U "209" in the Arctic Ocean was notified of the presence 
of enemy patrol forces in an area extending from south of Novaya 
Zemlya to the Kara Strait. Submarine TJ "601" reported the 
Ice boundary l60° and 100 miles off Cape Zhelaniya. 

In the North Atlantic, submarine U "705" sighted I4. steamers and 1| 
destroyers in quadrant AL 1+527 » a nd scored 2 torpedo hits on a 
large steamer. The operation against the convoy in quadrant AL 
is being continued. 

Off the American coast submarine U "14.58" sank a 3,000 GRT steamer 
in quadrant BB 8682. 

Contact with the convoy west of the Windward Passage was not 
resumed. 

No successes were reported by the submarines in the South Atlantic 
and in the Mediterranean* 

For further reports see supplement to the submarine situation in 
War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity ; 

During the day our air forces carried out armed recon- 
naissance flights and fighter-bomber attacks over localities on 
the coast. Sunderland and Great Yarmouth were raided in the night 
of 15 Aug. 

In that night, 60 to 75 ®nemy planes flew over western German, con- 
centrating their attacks on Duesseldorf. For losses and damage 
see daily situation report. 

2. Mediterranean Theater ; 

Reconnaissance flights extended over the entire Mediterran- 
ean Sea. For results see Enemy Situation, Mediterranean. Fighter 
thrusts east of El Alamein failed to establish contact with the 
enemy. 

3« Eastern Front ; 

Reconnaissance flights were carried out over the Black 
Sea, the Sea of Azov, and the Arctic Ocean. Supporting the Army 
operations, our fighters shot down 38 and our anti-aircraft guns 
8 enemy planes. 



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CONFIDENTIAL 
15 Aug. 19^2 

h» Speolal Item3 t 

The Air Force Operations Staff has placed the mine- 
sweeping planes and their crews which have been or will be al- 
located to the Air Force Group Command, Central Area under the 
administrative command of the latter and the operational command 
of Group North. The Air Force Group Command, Central Area has been 
instructed to contact Group North directly in order to arrange for 
joint action with regard to operations by mine-sweeping planes. 
(See Telegram 2200.) 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean ; 

The data on the whereabouts of the large, convoy of 2 
battleships, 1+ aircraft carriers, some JO cruisers, destrdyers, 
and escort vessels, and 21 steamers and tankers, which departed 
from the Strait of Gibraltar eastward on 10 Aug., can be summarized 
as follows: 

The following vessels have re-entered Gibraltar: 

On 12 Aug. - the FURIOUS (in damaged condition) and 3 destroyers, 
plus 1 destroyer damaged in a collision. 

On lij. Aug. - the RODNEY, 1 damaged aircraft carrier of the 

ILLUSTRIOUS class, 1 cruiser, and 6 destroyers, 
2 of them damaged. 

In the night of lij. Aug. - 1 cruiser, 7 destroyers, l\. corvettes, 
1 of them damaged. 

On 15 Aug. - the NELSON, 1 aircraft carrier of the ILLUSTRIOUS 
class, I4. cruisers, and 10 destroyers. 

At least 2 more cruisers and 5 destroyers which were northwest of 
Cape Bougaroun on lij. Aug. are expected to arrive at Gibraltar. 

Thus, 2 battleships, 3 aircraft carriers, 8 cruisers, and 36 
destroyers and escort vessels have entered port. The sinking of 
the EAGLE, the MANCHESTER, and the destroyer WRESTLER has been 
established with absolute certainty. Moreover, 3 tankers or 
steamers sunk off the Tunisian coast have been identified. i| 
steamers and 1 tanker were at Malta. As for the fate of the 
remaining 13 steamers, more information will have to be obtained, 
possibly from prisoner statements. In particular, it will be 
necessary to find out how many steamers and tankers actually 
belonged to the convoy from the very beginning, if we are to form 
a clear picture of the real extent of our success. These figures 
are also Important for determining whether the convoy was destined 
for either Malta or Alexandria alone, or for both of them. 

The British Admiralty issued a detailed report on the convoy 
operation. Vice Admiral Syfret was in command of the operation. 



-177- 



CONFIDENTIAL 
15 Aug. I9I4.2 

The report states that, as a result of the operation, the 

British convoy succeeded in bringing supplies and reinforcements, 

including a number of fighter planes, to the fortress of Malta. 

The attacks by PT boat forces in the Strait of Sicily were identified 

as such, and movements of the Italian cruiser division, as well as 

the 2 torpedo hits on the 2 cruisers, were correctly observed. 

It is claimed that 1 submarine was definitely and another probably 

sunk. The loss of the -MANCHESTER is admitted. 

Washington denies any participation of American vessels in the 
Mediterranean operation. 

2. Own Situation, Mediterranean ; 

The 2 German PT boats operating in the area off Malta 
failed to sight any enemy vessels. 

A belated report states that in the night of 12 Aug. 6 light 
enemy vessels fired on the harbor installations of Rhodes. 

3» Transport of Supplies to North Africa ; 

The transport of supplies from Italy and Greece to 
North Africa and along the North African coast proceeded accord- 
ing to plan. No incidents have been reported. 

1,007 tons were unloaded in Tobruk on 13 Aug. and 730 on ^h Aug. 

I+. Area Naval Group South ; 

Aegean Sea ; 

Convoy operations proceeded as planned. Destroyer 
ZG "3" entered Suda on the evening of ll; Aug. 

Black sea ; 

While leaving Yeisk, one of the vessels of the motor 
mine sweeper group was sunk by a mine, further statements by 
Russian deserters unanimously assert that the last Russian war- 
ships to leave laid magnetic and acoustic mines in the approaches 
to Yeisk. 

Referring to the motor mine sweeper lost off Yeisk, Group South 
points out once again that It is highly probable that there are 
Russian magnetic and acoustic mines in these waters. The Group 
therefore requests that mine-sweeping specialists with the 
necessary equipment and planes be dispatched to Mariupol. It 
is of Importance for mine-sweeping operations in any of the 
eastern Black Sea harbors to ascertain the type of mines and 
mine-sweeping methods used by the Russians. (See Telegram 2100.) 

If the weather improves, the 1st PT Boat Flotilla will be sent 
into action off Tuapse and the Italian subchaser flotilla off 
Novorossisk. 3 Italian submarines are to transfer from Constanta 
to Ivanbaba. 

On the basis of intelligence reports Group South reports that in 
answer to an inquiry by the U.S. Ambassador in Ankara as to what 



-I78- 



CONFIDENTIAL 



15 Aug. 19i^2 



measures Turkey might be expected to take If Russian naval forces 
enter a Turkish harbor, the Turkish Government declared un- 
equivocally that it will proceed in accordance with international 
maritime law. 

According to the experience with the Russian fleet In the Baltic 
Sea and the personal experience of the former Naval Attache in 
Moscow, the Naval Staff expects the Russian fleet to fight to 
their last round of ammunition in the defense of Batum and then to 
scuttle those vessels which escaped destruction in the battle. 
Since Turkey is Incapable of interning the. Russian fleet, it might 
also try to continue warfare from some bay in Turkish territorial 
waters, taking along large quantities of supplies. An attempt to 
break through the Dardanelles appears hopeless, and therefore 
unlikely. A few runaway vessels might go into voluntary internment. 
The same applies to the Russian merchant fleet. The Naval Staff 
communicates these views to Group South, with copies to the Naval 
Representative on the Armed Forces High Command Operations Staff, 
the Naval Liaison Officer to the Army General Staff and the Naval 
Liaison Officer to the Air Force Operations Staff. (See Telegram I919.) 

The Air Force Operations Staff has ordered the transfer of 1 
mine-sweeping plane hitherto employed by the 3rd Air Force, to- 
gether with its crew, to Mariupol for a temporary assignment 
with the l+th Air Force. The J+th Air Force is to work out the 
operations schedule for the plane in direct consultation with 
Group South. The Naval Staff has instructed the latter accordingly. 

All sorts of rumors are circulating in the Army about the start 
of supply transport movements from Taganrog, and these must be' 
investigated. It Is being asserted that the Navy refused to start 
the transport of supplies from Taganrog because of the uncertain 
mine situation and the Russian gunboat menace, whereupon the 
Siebel ferry battalion ventured the crossing on Its own, with- 
out the Navy's permission. The Naval Staff has requested Group 
South to submit the report of the Naval Shore Commander, Ukraine 
along with its own report on this subject. 



VTII. Situation East Asia 

The report of the Admiral, Tokyo summarizes the results of 
the Naval battle off the Solomon Islands as follows: 

1. On 7 Aug. naval land-based planes damaged 2 destroyers, 
one of which sank later. 

2. On 8 Aug. an aerial torpedo attack caused the sinking 
of 2 heavy and 2 light cruisers, 2 destroyers, and 9 transports; 
2 heavy cruisers and 2 transports were set on fire. One of these 
transports later sank. 

3. In the night of 8 Aug. a Japanese force consisting of 
5 heavy and 2 light cruisers and 1 destroyer encountered an enemy 
patrol of I4. heavy cruisers off Tulagi. The Japanese immediately 
launched a gunfire and torpedo attack in which 2 of the enemy 
cruisers were sunk. A running battle with another enemy force 

-I79- 



CONFIDENTIAL 
15 Aug. 191+2 

of 6 cruisers and 8 destroyers east of the first one followed. 
All enemy vessels, with the exception of 2 badly damaged destroyers, 
were sunk. The combat range was 3,000 to 6,000 meters. This means 
that , only 2 cruisers and 2 destroyers survived the night battle, 
while 2 vessels of the AUSTRALIA class, 5 of the SAN FRANCISCO 
class, and 1 of the OMAHA class were sunk. 

I4.. On the morning of 9 Aug. a British cruiser of the 
ACHILLES class (not a battleship) was sunk by aerial torpedoes 
100 lilies south of Tulagi. 

5» On 10 Aug. the remaining enemy naval forces and transport 
fleet were no longer sighted off Tulagi. 

6. Sum total of the sinkings: 

a. Cruisers: I4. on 8 Aug., 8 in the night of 8 Aug., 

1 on 9 Aug. Total: 13. 

b. Destroyers: 1 on 7 Aug., 2 on 8 Aug., 6 in the 

night of 8 Aug. Total: 9. 

7. The Admiral, Tokyo reports further as follows: 

a. The fighting continues. Since, however, the 
Americans are not receiving any supplies, the Japanese Navy 
expects the battle to end soon. Radio communication with Tulagi 
has been reestablished. Enemy reports about successful seizure 
of the Solomon Islands are incorrect. 

b. The Japanese air forces in Rabaul recently obtained 
reinforcements which more than compensate for the losses incurred. 

c. Prior to and during their attack on the Solomon 
Islands the Americans evidently tried to prevent Japanese air 
reconnaissance operations by heavier raids on Rabaul, without, 
however, achieving any noteworthy success. 

d. South of Timor, light enemy forces were sighted 
only once; this was off Samuraki 1+ or 5 days ago, when they were 
driven off by Japanese fleet and air forces. No landing was made. 

e. On 11 Aug. Japanese planes attacked the newly- 
built airfield near Moresby and allegedly destroyed 11 enemy 
planes. 

This report again shows the excellent training 
of the Japanese forces in night combat and their 
great superiority in this respect over the enemy 
flee.ts. 



IX. Army Situation 

1. Russian Front : 



Army Group A : 

Pushing farther in the direction south of Krasnodar, our 

-I80- 



CONFIDENTIAL 
15 Aug. 19i+2 

troops took Georgievsk, Afipskaya, and Dmitrievka. Advance de- 
tachments of the 1st Mountain division reached the area 10 km 
south of Teberda in the direction of the Dombai pass. Spearheads 
of the 23rd Panzer Division are engaged in active air defense 
operations northeast of Nalchik. The LII Army Corps is advancing 
from the Elista area toward the southeast. 

Army Group B ; 

Air reconnaissance has disclosed that the enemy is 
bringing up strong forces from Stalingrad against the right sector 
of the northern front of the Panzer Army. The 6th Army launched 
an attack on the northeastern bend of the Den River northwest of 
Stalingrad with the intention of encircling the enemy forces 
located in the river bend. The enemy succeeded in reaching the 
southern bank of the Don River on both sides of the point where the 
Khoper River flows into the Don. Northwest of Voronezh, a 
counterattack by our troops resulted in the restoration of our 
previous main line of resistance. Southeast of Yelets enemy 
troops extended their breakthrough in westerly direction. 

Central Army Group ; 

Little ground has so far been gained by our thrust 
toward the Zhizdra River. 

All enemy attacks east of Vyazma were repulsed. Enemy planes 
made it very difficult for the 31st Division to take up its 
attack position. Enemy attacks in the area south and north, of 
Rzhev were repulsed with the support of the Air Force. Our 
troops took back the line northeast of Rzhev. 

Northern Army Group ; 

Enemy attacks against the land bridge southeast of 
Staraya Russa were repulsed. Our troops succeeded in greatly 
improving their position at the bridgehead south of Soltsy. 

2. Finnish Front ; 

Local fighting was reported. Otherwise" there were 
no important engagements. 

3. North Africa ; 

The planned defense measures were cancelled in view of 
the successful aotion against the enemy convoy in the Mediterranean* 
Otherwise there was nothing to report. 

*###4HHHHt*###4KHMfrtt*HHttHMM» 



-I8I- 



CONFIDENTIAL 
16 Aug. 1942 

Items of Political Importance 

In an article on the military situation, the Dagens Nyheter prop- 
erly emphasizes the German victory at Tobruk as a decisive factor 
In frustrating the Allied plans for a second front. The promises 
to Molotov were made at a time when it was definitely expected that 
the Germans would be driven out of North Africa before the end of 
the summer. In this ca.se the British fleet would have been master 
of the Mediterranean, leaving enough ships available for a large- 
scale operation in France. Rommel's victory upset all these cal- 
culations and made it impossible for Russia's allies to keep their 
reluctant promise to Molotov, namely, to advance the date of the 
offensive originally planned for 1943. 

In one of the American periodicals, the British Air Marshal threat- 
ens that, as soon as the nights are long enough, a large-scale air 
offensive will be launched against German cities, including Berlin, 
with the aim of demoralizing the German people. 

In Britain as well as in Amerioa the press and the Navy are at odds 

with regard to security regulations.' In London, the dispute was 

caused by the premature announcement of the loss of the EAGLE in 

the Daily Express . In the U.S.A., the cause was a report in the 

Chicago Tribune Carelessly revealing information about the Midway 

Island operation. 



Speoial Items 

I. On 5 Aug. the first military conference since Japan's entry 
into the war was held between the Chief of the Armed Forces Opera- 
tions Staff, General Jodl (Artillery) Admiral Nomura, and General 
Banzai. The Germans gave a survey of the Caucasus operation and of 
the situation in the Near and Middle East. Great Britain cannot 
afford to lose the Middle East, in view of her oil interests, the 
Arab question, and the attitude of Turkey. For this reason enemy 
supply shipments to this area should be attacked by the Germ&n Navy 
in the narrow waters between Africa and America, by Japan, with the 
aid of surface foroes if necessary, along the eastern ooast of Africa. 

Once Russia is beaten the war will be decided. Japan can help by 
the above-mentioned operation. The Fuehrer, too, is of the opinion 
that Japan should not attack the Russian territory in the Fax East 
unless she has definite superiority and the certainty of a quick 
victory. Otherwise a new theater of war would mean an excessive 
burden to Japan. 

While agreeing in principle with this estimate of the situation, 
Nomura outlined the following tasks for the Japanese and the German 
Armed Foroes: 

for Japan - India, Australia, and the Indian Ocean 

for Germany - the Middle East and the Mediterranean. 

Preparations by Japan are in progress, only the date remains to be 
fixed. In view of the considerable strength of the British in the 
western part of the Indian Ocean, the Japanese fleet can operate 
there only after careful preparation and after the monsoon period 



-183- 



CONFIDENTIAL 
16 Aug. 1942 

ie over. Japanese submarine operations are being gradually inten- 
sified. Japan's tactical and strategical ideas differ from those 
"held by Germany. For the Japanese Navy, the ultimate goal is to 
annihilate the naval forces of the enemy in order to obtain control 
of the seas. Germany, whose surface forces are weak, must confine 
herself to submarine attacks on merchant ships. The Japanese Navy 
has to control 3 fronts: in the east, the south, and the west. More 
would be too much. Japan will gradually push ahead by way of India, 
while Germany and Italy should advance similarly in the Middle East. 
Too much must not be demanded of Japan. 

The Naval Staff is of the opinion that in a coalition 
war the individual powers must sometimes subordinate 
■-" their own objectives to a common interest. 

General Banzai said that 1 1/3 years ago it was decided that Japan 
should launch an offensive in the south although she would have 
preferred to attack the enemy in the north. Now it is difficult to 
carry the attack to the north, too. The Array might still be in a 
position to do so, but the Air Force would have to cope with too 
many tasks in areas too wide apart. China is consuming too much 
of the Japanese Air Force. Germany must give Japan time for a 
thorough preparation. The German offensive in Egypt is important. 

From now on, such discussions are to be held approximately every 4 
weeks. 

The Naval Staff sincerely welcomes the fact that a 
German military commander of authority finally 
initiated discussions with Japan on the common 
objectives and task«3 of Germany and Japan in the 
present war. The Naval Staff has been constantly 
pursuing this course with notable success, particu- 
larly in getting the Japanese war leaders to co- 
operate with the German policy, as recognized by 
General Jodl himself. 

II. According to a noteworthy agent report transmitted by the Air 
Force Operations Staff on 5 Aug., a committee of 5 U.S. naval ex- 
perts surveyed Vladivostok and the Amur Bay in April 1942 in order 
to examine the defensive capacity of this area against a Japanese 
attack. The findings were extremely unsatisfactory for the enemy. 
Neither by themselves nor with American aid would the Russians be 
able to defend Vladivostok. On the contrary, Japan could overrun 
the entire eastern part of Siberia as far as Lake Baikal with only 
30 divisions. Thus the committee had to confine itself to determin- 
ing what should be moved in time to be saved and what should be 
destroyed. The situation in eastern Siberia causes great concern in 
Washington, particularly since the Russians know how to use the 
threat of a separate peace for extorting any desired aid from the 
Allies. The entire burden of the defense in the Far East will have 
to be borne by the U.S.A., since the German view that the most im- 
portant part of Russia lies in Asia is regarded as incorrect. 

This is not a German view, but the logical aim of the 
German policy intended to bring about a situation 
which would push such a formidable neighbor away from 
Europe. After all, this was the very purpose of the 
German attack in 1941 i 



-183- 



16 Aug. 1942 



CONFIDENTIAL 



III. The negotiations between the Naval High Command, General Admin- 
istration Bureau, Recruitment Division and the Armed Forces High 
Command about further replacements for the Navy, chances of which 
appear unfavorable, have demonstrated the following: 

Replacements required for the period from 1 Aug. 1942 to 30 Sep. 1943 : 



1. For shore duty 

2. For shipboard duty, exclusive of submarines 

3. For submarines 

4. Replacements for casualties, etc. 

5. Replacements for personnel transferred to 
shipyards 



85,500 men 
41,500 men 
18,000 men 
33,000 men 

3,800 men 
181,000 



Total requirements, exclusive of reserves 

Available : 

Of those already inducted, those subject to service, 

and the rest of the 24 and 25 year old naval reservists: 110,100 

Hence, replacements required but not available 71,000 

The effect will be that not only will it be impossible to make per- 
sonnel available for shore duty, but any unscheduled requirements 
which arise in the operations areas will have to be met partly by 
withdrawing personnel from shore duty. This will result in a con- 
stant decrease of personnel, particularly in naval artillerv and 
coastal defenses. 

This survey of naval requirements demonstrates to 
what a critical extent the expansion of the war has 
strained our manpower situation. Since the war is 
expected to continue for some time, this factor 
should be given the most serious consideration. 

IV. A new Supplies and Fuel Branch has been established within the 
Naval Staff Quartermaster Division, under Rear Admiral (Engineer) 
Dr. Luettge. 

V. According to a communication from the Naval Liaison Officer to 
the Air Force Operations Staff dated 12 Aug., the Commander in Chief, 
Air Force has asked the Commanding General, Armed Forces, South to 
report on the problem of mining the Strait of Sicily through which 
62 British vessels again passed unimpeded on the night of 11 Aug, 

When the Caucasian offensive is finished (in about 3 weeks), the 
4th Air Force will have to transfer a large proportion of its planes 
to the 1st Air Force which in the meantime is making preparations 
for an attack on Leningrad. 

Since visibility on the night of 11 Aug. was poor, the enemy air 
raid on Mainz on that night could only have been carried out by 
means of radio navigation (planes guided by radio beams). 



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CONFIDENTIAL 
16 Aug. 1942 

Since unfortunately no other mines are available, the 5th Air Force 
has been ordered to lay immediately BM 1000 mines off Archangel. 



Situation Ifi Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

Disposition of British naval forces on 1 Aug.: 

At home: 8 battleships, 6 aircraft carriers, 31 cruisers 

In Canada: 1 battleship, 1 aircraft carrier, 1 cruiser 

U.S. West Coast: 1' battleship, 5 cruisers, 3 auxiliary cruisers 

Freetown: 1 aircraft carrier, 4 cruisers, 8 auxiliary cruiser 

Cape Area: 4 cruisers 

Gibraltar: 1 aircraft carrier, 5 cruisers 

Indian Ocean: 5 battleships, 3 aircraft carriers, 11 cruisers, 

6 auxiliary cruisers 

Australia: 3 or 4 cruisers, 5 auxiliary cruisers 

For disposition of individual vessels see Radiogram 2351. 

No further reports have been received. 

2. Own Situation : 

At 0317 ship "28" 6ent a short signal reporting the silent 
capture and sinking* of steamer ARABISTAN (5,874 GRT) in large quadrant 
FU and that she has shifted her operations area to the southern- part 
of the South Atlantic. Since information at her disposal is in- 
adequate, ship "28" asks for a report on the enemy situation. 

The Naval Staff sent its confirmation via Radiogram 0511. 

This report is particularly reassuring because it 
proves that the situation is still clear for ship 
"28", although th3 American press has been spreading 
news about a search operation by U.S. cruisers in 
the 8outh Atlantic. The ship's withdrawal to the 
southern part of the South Atlantic was absolutely 
appropriate. The sinking of the ARABISTAN brings 
the total tonnage sunk by this sucoes6ful auxiliary 
cruiser up to more than 62,000 GRT. 



* Silent capture: a method of attaok which prevented the victim from 
sending out radio messages. The raiding ship's airplane would swoop 
down on the ship in a surprise attack and cut her antennas. 



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CONFIDENTIAL 



16 Aug. 1942 



All vessels in foreign waters are being notified about the dispo- 
sition of British naval forces on 1 Aug. via Radiogram 2351, about 
developments concerning Argentina's and Chile's neutrality via 
Radiogram 1141, and about the enemy situation via Radiogram 1918. 

Via Telegram 0505 the Naval Staff is sending the German Admiral in 
Tokyo a report on the operation against the Mediterranean convoy 
for information of the Japanese Naval Staff. 



TT. Sitnflt.inn Wpr+. Arpa 

1. Enemy Situation ; 

According to radii intelligence, a British task force com- 
mander reported at 2305 that he had intended to board a German ves- 
sel but was unable to do so because the vessel was on fire. Her 
crew has been taken aboard. The British vessels are carrying war 
prisoners. 

2. . Own Situation ; 

Atlantic Coast ; 

No incidents were reported. 

Channel Coast ; 

At 0255, 5 vessels of the 4th PT Boat Flotilla entered 
Hook of Holland. 4 vessels of the 5th PT Boat Flotilla are scheduled 
to carry out a mine operation on the night of 16 Aug., and PT boats 
S "104" and "105" are scheduled to transfer from Boulogne to Ijrauiden 
on that night. Mine operation "Akkord" has been executed according 
to plan. Operations "Fritz" and "Arbeiter" are scheduled for the 
night of 16 Aug. 

At 2228 our motor mine sweepers made contact with enemy motor gun- 
boats in quadrant AN 7997. Details are still lacking. (See also 
Enemy Situation.) 

From 2211 to 2216 the batteries "Grossdeutschland" , "Todt", and 
"Grosser Kurfuerst", as well as the 702nd Army Artillery Battalion 
fired 14 rounds in retaliation for the gunfire attack on our vessels 
by the British battery at St. Margaret on Cliff. At 2343, the 
battery "Grosser Kurfuerst" and the 2nd Naval Coastal Artillery 
Battalion opened fire on a burning enemy vessel in quadrant AN 79. 



f 



f 



ITT. North Sea f Norway, Arctic Ooean 
1. North Sea ; 

Enemy Situation ; 

No reports of interest were received. 



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CONFIDENTIAL 



16 Aug. 1943 



Own Situation ; 

On the night of 15 Aug. enemy planes were active over the 
German Bight. It is assumed that mines were dropped on the convoy 
routes north of Schiermonnikoog and Borkum. Our night fighters 
failed to establish contact with the enemy. Between 0206 and 0235 
an enemy courier plane flew from England to Sweden via Skagerrak. 

The mine-detonating vessel "160" which was proceeding ahead of con- 
voy no. 1870, consisting of torpedo boat JAGUAR, 8 steamers total- 
ling 31,548 GRT, 3 patrol vessels, and 1 mine sweeper, en route 
from Hook of Holland to the Elbe River sank off the Dutch coast 
after striking a mine. During the afternoon enemy planes were active 
over the Dutch coast. It was observed that 4 bombs or mines were 
dropped in the North Sea Canal off Ijmuiden. 2 Spitfires made a 

low-level attack on Schouwen Island. 1 plane flew over Wilhelm- 
shaven, penetrating as far as the Berlin area, and returned by the 

same route. 

3 ground mines were swept in the Borkum area. 

Mine operation "SW 101" has been executed according to plan. 

2. Norway ; 

On 14 Aug. the enemy battery on the Rybachi Peninsula 
fired 6 rounds on the entrance to the Petsamo Fjord without oausing 
any damage. On 15 Aug. Norwegian fishermen sighted a surfaced 
Russian submarine east of Kyberg. Single Russian planes were 
operating over the Arctic coast. , 

Protective nets have been laid off the Sweden pier and the oil 
pier in Petsamo. 

The mine layer ULM, the destroyer Z "23", and the torpedo boats 
T "9" and T "12" passed through Kristiansand South in northerly 
direction. 

The areas of Narvik, Tromsoe, Hammerfest, and Kristiansand South 
have been placed on first-degree alert on account of poor visibility. 

Convoy and mine-sweeping operations proceeded according to plan 
without noteworthy incidents. 

3. Arctic Ocean : 

Enemy Situation : 

On 15 Aug. air reconnaissance spotted 3 small steamers 
and 3 barges in Kharakovo and 1 small harbor patrol vessel in each 
of the bays northwest and east -northeast of Kharakovo. Air recon- 
naissance also reports an unbroken thin ice cover in the Kara Strait. 

Own Situation : 

Asked by the Admiral, Arctic Ocean on what basis Group 
North assumes that convoy PQ 18 has reached its port of destination, 
the Naval Staff refers the Admiral to the press report, which the 
Naval Staff considers was released for deceptive purposes, since 
no time was mentioned. 



-187- 



CONFIDENTIAL 
16 Aug. 1942 

Group North also communicates this opinion of the Naval Staff to the 
Admiral, Arctic Ocean, with copy to the 5th Air Force, stating that 
the Navy and the Air Force have exhausted their means of intercepting 
convoy PQ 18 and that no success can be expected from carrying on the 
search. According to Group North, it is of foremost importance to 
keep the submarine positions in the Denmark Strait continuously oc- 
cupied in order to ascertain the departure of the convoy in time. As 
soon as the first definite report is received, the submarines posted 
in the harbors must proceed to take up positions west of Spitsbergen 
or in the Bear Island Strait with as much speed as visibility and 
weather conditions permit. If necessary, they should also take up 
positions at the entrance to the White Sea. Submarines committed to 
other tasks should in each case be re-directed toward the most valuable 
target, which is generally a PQ convoy. 

The Naval Staff agrees with this directive. 

The Admiral, Arctic Ocean reports that operation "Wunderland" was 
started from the Bogen Bay at 1700. At 2300, the SCHEER was in the 
northern outlet of the Grirasoestraumen. 

The Naval Staff has informed Group North, the Commanding Admiral, 
Norway, the Fleet, the Commanding Admiral, Cruisers, and the Admiral, 
Arctic Ocean about the prisoner statements according to which convoys 
from England to Archangel started as early as 1941. During the winter 
of 1941-1942, the harbor was kept open until the end of January by 
the ice-breaker LENIN which had worked all through the winter of 1940- 
1941. Ships dock at the piers. The harbor is not fortified. There 
is an airfield on Keg Island. The Naval Staff has called the attention 
of the Air Force Operations Staff to the possibilities of a success- 
ful operation against this target. 



IV. Skagerrak. Baltic Sea Entrances. Baltic Sea 

1. Enemy Situation : 

A Finnish source reports that on the evening of 15 Aug. an 
enemy submarine was located approximately 1 mile north of Hogland 
and that she was attacked by Finnish patrol vessels. 

2. Own Situation : 

On 15 Aug. the Norwegian steamer LOG (1,510 GRT) sank in 
the Kaiser Wilhelm Canal at Km 86.5. Ships not exceeding 10,000 GRT 
in tonnage, 20 ra in width, and 8 m in draft are able to pass through 
the canal. The Swedish steamer WARY collided with another steamer 
lying at anchor off Buelk and was beached. A total of 4 ground mines 
were swept in the Fehmarn Belt, the Great Belt, and the Kattegat. 

Enemy planes are increasing their activity over the Gulf of Finland. 
Motor mine sweeper R "106" was attacked from the air and destroyed 
in the southern part of the "Seeigel" minefield. 12 enemy planes 
bombed and strafed mine layer M "29" south of Vigrund, causing a 
number of casualties. 13 bombers unsuccessfully attacked the 3rd 
Mine Sweeper Flotilla south' of Tytersaari. 2 of the planes were 
set on fire. Mine-sweeping, convoy, and patrol operations in the 



-188- 



CONFIDENTIAL 
16 Aug. 1942 

area of the Commander, Mine Sweepers, Baltic Sea proceeded accord- 
ing to plan. 

The 1st Air Force has repeatedly rejected all the urgent demands by 
the Commander, Mine Sweepers, Baltic Sea for fighter protection. The 
Commanding Admiral, Group North has therefore instructed the Com- 
mander, Mine Sweepers, Baltic Sea to withdraw the naval forces from 
the most imperiled area pending the arrival of the indispensable 
fighter protection, so as to avoid losses to our forces and prevent 
easy viotories by the Russian Air Force. The Commanding Admiral, 
Group North has requested the Naval Staff to use its influence in 
bringing about the allocation of adequate forces to the 1st Air Force 
in view of the fact that naval warfare cannot be carried on in coastal 
waters close to the enemy's shore without air support. 

The Naval Staff is taking the necessary steps. 



V. Submarine Warfare 

t 

1. Enemy Situation : 

Both groups and the Iceland forces maintained lively 
reconnaissance activity. From the Bay of Biscay alone we intercepted 

4 submarine sighting reports and 4 reports on air attacks against 
submarines sent by planes. Other submarine sighting reports were 
intercepted from some 370 miles northwest of Porcupine Bank and 110 
miles south of Rockall Bank. British vessels were located 250 miles 
northwest of Cape Ortegal as well as about 50 miles from that posi- 
tion and also 300 miles northwest of Porcupine Bank. 

In the West Indies area, submarine sighting reports were picked up 
from the Florida Strait, the Windward Passage, east of Martinique, 
and from the area about 400 miles southeast of Trinidad. 

2. Own Situation : 
Disposition of submarines : 

■ 

In the Arctic Ocean, 8 submarines are at their positions, 
2 are en route to and 3 are en route from the operations area. 8 
submarines are in the harbors. 

In the Atlantic Ocean . 36 submarines are in the operations area. 4 
submarines have departed from the harbors of western France and 16 
from Germany. 15 submarines are en route back to their bases. 

1 submarine is in the area of northern Scotland and Iceland . 

5 submarines are in the operations area of the South Atlantic group , 
while 8 have departed for that area. 

In the Mediterranean . 4 submarines are operating at sea, 2 have de- 
parted from base and 1 is returning to base. ' 8 submarines are in 
the harbors and bases. 

5 submarine tankers are at sea. 



-189- 



CONFIDENTIAL 
16 Aug. 1943 

No successes have as yet been achieved against the convoy assumed 
to be in quadrant AL. 

Submarine U "596" sank the evidently unescorted Swedish steamer 
SUECIA (3,730 GRT) in quadrant AL 4189. 

Submarine U "294" returning from the operations area evaded a three- 
fan in quadrant BE 6686, 250 miles northwest of Cape Ortegal (see 
Enemy Situation). This confirms the assumption that the enemy is 
also using submarines to fight our submarines in the outer part of 
the Bay of Bisoay. 

Nothing noteworthy has been reported from the American east coast. 

Since the ship traffic in the Trinidad area has undergone changes 
due to the appearance of large numbers of our submarines, they have 
been assigned new attack areas, directly off the harbors wherever 
possible. No reports of successes in this area were received. 

Of the group operating in the South Atlantic, submarine U "752" 
sank an 8,000 GRT steamer in quadrant ET 9317 on 13 Aug. 5 (later 6) 
boats of the "Bluecher" group are scheduled to attack a convoy which 
was located in quadrant CG 7357. 

Since the Commander, Submarines, Italy does not expect any further 
enemy operations in the western Mediterranean before the end of 
August, the Naval Staff agreed by telephone to his suggestion that 
the submarines employed in that area be transferred to the eastern 
Mediterranean. 

For further reports see supplement to the submarine situation in 
War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

Bad weather hampered reconnaissance operations. 3 enemy 
planes were shot down near Fanoe. In the night of 16 Aug. our planes 
attacked airfields in the Nottingham area. Enemy planes made 30 to 
35 incursions into the Reich area on that night, penetrating as far 
as Rostock, Stolp, Bornholm, and Kallundborg. One of the planes 
flew as far as Gdynia. No bombings were observed. It is to be 
assumed that the planes have been dropping mines. For inoursions 
during the day see Situation, North Sea. 

2. Mediterranean Theater : 

Our planes carried out a number of reoonnaissanoe mis- 
sions. For results see Enemy Situation, Mediterranean. 

3. Eastern Front : 

In the Black Sea, 2 small vessels were sunk and 2 others 
damaged off Temryuk. 3 medium-sized steamers were damaged in the 
harbor and the roadstead of Novorossisk. 1 steamer was damaged and 



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CONFIDENTIAL 
16 Aug. 1942 

1 coastal vessel was sunk off Gelendzhik. 



VII. Warfare in the Mediterranean and the Black Sea 

- I4 Enemy Situation, Mediterranean ; 

An aircraft carrier of the ILLUSTRIOUS class, which docked 
in Gibralter on 15 Aug., left dock at noon. In the night of 15 Aug. 
1 battleship of the RODNEY class, the FURIOUS, 1 ship of the IL- 
LUSTRIOUS class, and 1 cruiser departed from Gibraltar, presumably 
in westerly direction. On 16 Aug. at noon 2 more cruisers and 1 
destroyer left Gibraltar, presumably also for the west. At 1400 
the NELSON, 1 aircraft carrier of the ILLUSTRIOUS class, 1 cruiser 
of the FIJI class, and another cruiser, as well as the ARGUS (in 
dock) , were observed in ths harbor. 

According to an intelligence report from an unconfirmed source, the 
vessels in Gibraltar showed the following damage: 

The starboard anti-aircraft gun mount of the ILLUSTRIOUS was hit by 
a bomb. 2 guns are missing. The bomb penetrated 2 decks and ex- 
ploded 20 feet above the waterline, tearing a hole of approximately 
7 meters in diameter in the ship's side. Another hit, presumably 
from a gun, can be seen on the port side at the level of the bridge. 
The hole in the ship's side is about 5 meters large. 

The RODNEY was hit by a torpedo on the port side. Details are lack- 
ing. (The torpedo might have been fired by an Italian submarine.) 

The bow of a DIDO-class .cruiser was hit by a torpedo from a sub- 
marine. 

The bow of a FIJI-class cruiser was torn off. 

The bows of 2 destroyers are badly damaged, apparently as a result 
of a collision. 

Air reconnaissance observed lively submarine activity off the western 
coast of Greece. 

Only few convoys were observed off the Palestinian coast. 

2. Own Situation : 

No incidents were reported. 

3. Transport of Supplies to North Africa : 

On 15 Aug. at 1830 an enemy submarine torpedoed the Italian 
motor ship LERICI f6,C00 GRT) off the western coast of Crete. The 
attempt to bring the ship into Navarino failed. An Italian destroyer 
sank the steamer on 16 Aug. at noon. 

An enemy submarine and planes attacked the convoy of the steamer 
MENES en route from Benghazi to Suda. Enemy planes attacked the 



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CONFIDENTIAL 
16 Aug. 1942 

SPORTIVO and BIANCHI convoy en route from Suda to Tobruk. No re- 
ports about the arrival of the £hips have been received so far. 
Otherwise the transport of supplies proceeded according to plan. 

4. Area Naval Group South : 

Aegean Sea : 

Convoy operations proceeded as planned. The destroyer 
ZG "3" will be relieved en route by an Italian destroyer and will 
then proceed to Suda. 

Black Sea : 

Enemy Situation : 

Air reconnaissance reports that there are no longer any 
seaworthy vessels to be seen in Novorossisk. The hull of 1 warship, 
4 tankers, 4 steamers, and 2 floating cranes were observed in Tuapse. 
On 15 A°ug. the KRASNY KRIM, 1 flotilla leader, and 2 destroyers were 
located at sea. Little traffic was observed off the eastern Black 
Sea coast. 

Own Situation : 

Convoy operations proceeded according to plan. 

5. Special Items : 

(l) Group South has transmitted the following report 
about the plans of the Admiral, Black Sea to the Naval Liaison 
Officer with the Array High Command, with copy to the Naval Staff: 

After the occupation of Novorossisk the supply transport route is 
to be swept free of mines. The sunolies from the Rumanian and Rus- 
sian areas will be brought by steamer to Balaklava where they will 
be transferred to landing barges. From Balaklava the cargo will be 
transported by landing barges via the coastal route sweot free of 
mines to Novorossisk escorted by the 3rd Motor Mine Sweeper Flotilla, 
with long-range reconnaissance and close escort by the 4th Air Force. 
The transport of supplies from Kerch to Novorossisk will begin 
simultaneously. 

The Group remarks that Sevastopol and Feodosiya cannot be used as 
ports of transshipment for the time being since no raine-sweeoing de- 
vices are as yet available for the removal of influence mines. In 
addition to the landing barges scheduled to oarticipate in operation 
"Bluecher", 8 landing barges will be ready for transport operations 
in the Crimean harbors on 18 Aug. This date deoends on the final 
outcome of the investigation concerning Russian acoustic and magnetic 
mines. (See Telegram 1340.) 

(2) Group South announces that the Naval Shore Commander, 
Ukraine has been asked to report on the rumors that the Navy is not 
doing its part in transports to Azov. Apart from this, Group South 
states that it is the duty of the responsible Naval Shore Commander 
to see to it that supply transport routes are free of mines. The 
date set by Army Group A as the latest on which the transports should 
begin, i.e., 4 Aug., was met. Even if it is true that the Siebel 
ferry detachment started the transport operation on its own initiative 



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CONFIDENTIAL 
16 Aug. 1942 

against the orders of the Naval Shore Commander, the fact that no 
losses occurred during this operation can by no means be attributed 
to the special courage of the participants but rather to their good 
luck which has nothing to do with actual responsibility in the 
military sense. (See Telegram 1340.) 

This is exactly the opinion of the Naval Staff. - 

(3) Group South does not recommend the use of submarine 
DELFINUL for transport operations because her loading oapacity is 
not great enough to be worth while; also, being a Rumanian vessel,' 
the DELFINUL would have to be handled with particular care, with 
the result that her use would hardly be more time-saving than that 
of a surface ship (see Telegram 1340). 

The Naval Staff agrees with this viewpoint. 



VIII. Situation East Asia 

No noteworthy reports have been received. 



TY. Army 3i tiia-H rm 

1. Russian Front ; 

Army Group A ; 

Neftegorsk has been captured. Advance detachments are 
raarohing toward Alekseyevskoye. Spearheads of the XLIX Mountain 
Corps are engaged in a fight with strong enemy forces 10 km north- 
west of the Klukhor Pass. Another unit of the Mountain Corps is 
advancing toward the Chiper Asau Pa6s on the southwest edge of the 
Elbrus Mountain without having made contact with the enemy. The 
3rd Panzer Division of the XL Panzer Corps is near Baksan, while 
the 33rd Panzer Division of this corps took Soldatskaya. 

Army Group B ; 

The attack on the right wing of the 4th Panzer Army was 
repulsed. The 6th Army mopped up the enemy forces in the Don River 
bend on the western and northern banks of the river. Enemy attacks 
south of the point where the Bityug River flows into the Don, as 
well as south of Voronezh, and at the point of penetration southeast 
and south of Yelets were repulsed. The enemy continued to bring up 
reinforcements along the entire front. 

Central Army Group : 

Our troops continue their operation in the Sukhinichi area 
against stubborn enemy resistance. Enemy attacks southeast of 
Vyazma were repulsed. By attacking our southern position south of 
Rzhev, the enemy widened the breach in our lines. All other enemy 
attacks were repulsed. New strong enemy tank attacks were direoted 
against our main line of resistance which had been withdrawn east 
of Rzhev. 



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CONFIDENTIAL 



16 Aug. 1942 



Northern Army Group ; 

Enemy attacks north of the land bridge south of Lake Ilraen 
were repulsed. The enemy, attacking from the south, penetrated the 
position of the SS Death's Head unit. A counterattack is under way. 
Heavy enemy attacks near Soltsy were repulsed. Southeast of Leningrad 
the enemy succeeded in penetrating our oosition at the railroad line 
near Kolpino. 

2. Finnish Front ; 

No noteworthy fighting was reported. 

3. North Africa ; 

Enemy patrol operations and lively air activity are re- 
ported from the central and southern sectors. Enemy artillery at- 
tacks, at times very strong, were directed against our northern' 
sector. On the night of 14 Aug. an enemy assault detachment landed 
on the coast near El Daba. After inflicting minor damage on our 
motor vehicles, the detachment made an attempt to break through to 
the British lines in the east. 

************************* 



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CONFIDENTIAL 
17 Aug. 1942 

Items of Political Importance 

The Moscow Conference ; 

Reuter has published an official British communique on the meet- 
ing between Churchill and Stalin in Moscow. The conferences 
lasted from 12 to 15 Aug. Wavell, Sir Alexander Cadogan, Alan 
Brooke, .«Harriman, as well as Molotov and Voroshilov, were among 
those attending the conferences. The communique states that a 
number of decisions' were made concerning the war against Hitler 
Germany and her allies in Europe. The two governments are de- 
termined to carry on this war of liberation with all the forces 
at their disposal and with utmost energy until Hitlerism as well 
as any other tyranny of the same kind are completely annihilated. 
Harriman represented Roosevelt at these conferences, which were 
conducted f ln a spirit of cordiality and complete sincerity". 
Churchill and Harriman left Moscow on 17 Aug. 

Turkey ; 

According to a statement of a Turkish diplomat, even a German 
victory in the Caucasus or the collapse of Russia will not in- 
duce Turkey to give up her neutrality, especially if the war be- 
tween the Anglo-Americans and the Germans continues. Turkey, too, 
is a sea power and. has to act accordingly, 

Italy ; 

The Associated Press reports that a Pan-American conference of 
"Free Italians" in Montevideo has established a "government" t 
under Count Sforza. 



Conference on the Situation with the Chief, Naval Staff 

I. In view of the great successes achieved by ship "28", the 
Chief, Naval Staff lias ordered that the commander of the ship, 
Comdr. von Ruckdeschel be promoted to captain. 

In view of the obviously poor training of U.S. warships in night 
combat, evidenced during the recent battle off the Solomon 
Islands, all auxiliary cruisers should be informed accordingly. 
The Naval Staff will take the necessary steps. 

II. The Naval Staff is of the opinion that the enemy convoy in 
the Mediterranean carried supplies for Malta. The large number 
of transports used in. this operation was meant to anticipate 
losses, ^he aircraft carriers were primarily designed to furnish 
fighter protection for the convoy, aside from the task of trans- 
porting planes to Malta which probably was of secondary importance 
Following the heavy losses suffered early in July, the enemy may 
be assumed to have expected a better chance for fighting off our 
air attacks since the sky was clear and the barometer high. Be- 
sides, the prevailing weather conditions are unfavorable for 



-195- 



CONFIDENTIAL 
17 Aug. 1942 

submarine attacks. The battleships had to be sent along in order 
to protect the aircraft carriers. 

According to reports received so far, 5 steamers, including 1 
tanker, have reached Malta. The escort forces accompanying the 
convoy have returned from Malta to Gibraltar. 

This fact constitutes a striking demonstration of the inadequacy 
of the mine barrage in the Strait of Sicily. The Naval Staff 
will take further steps to block the passage completely by mines. 

So far, the following enemy losses have been established: the 
EAGLE and the MANCHESTER sunk, 2 aircraft carriers definitely 
damaged, the RODNEY, 1 cruiser, and 2 destroyers probably damaged. 

Further information is expected from prisoner statements. 

The Naval Staff does not consider it likely that the British would 
try to get a considerable amount of supplies to Egypt by way of 
the western Mediterranean. In any case, the enemy has to expect 
such high losses in the Mediterranean that in comparison the longer 
route around the Cape would be more advantageous. 

The Naval Staff has sent this opinion to the Armed Forces High 
Command Operations Staff, with copy to the German Naval Command, 
Italy, Group South, the Naval Liaison Officer to the Air Force 
Operations Staff, and the Naval Liaison Officer to the Army Gen- 
eral Staff. 

III. With regard to the assumption of Group South that the enemy' 
has laid magnetic mines with acoustic firing devices off Yeisk 
and Akhtari, the Naval Staff states that, in addition to landing 
barges and motor mine sweepers, there are also the vessels of the 
Danube flotilla, the steamer BAIKAL, and 2 Rumanian vedette boats 
which are suitable for sweeping mines in the Black Sea area. The 
Naval Staff is trying to replace the only mine-detonating vessel 
which was available and has been lost. 

IV. The Chief, Naval Staff Communications Division reports that 
today the most important information for decoding Anglo-American 
radio messages was handed over to the Japanese to be taken along 
by submarine I "30". As for the Japanese decoding service, the 
Chief, Naval Staff Communications Division does not think that it 
can keep pace with our own achievements. The Japanese designate 
as valuable many of the enemy reports which we transmit to them 
every day. In any case, it is we who are the givers in this ex- 
change of information. If, as may be assumed, the Japanese are 
unable to find out by themselves what code changes the enemy has 
made during the voyage of submarine I "30", it will be somewhat 
difficult for them to utilize the material delivered to them up to 
this date. This will give us an opportunity to obtain valuable 
evidence as to the actual effectiveness of the Japanese decoding 
service. 

V. The Chief, Naval Staff Quartermaster Division reports that 
the Fuehrer was satisfied with his explanation of the Navy's 
position with regard to the explosive cyclonite. 

-196- 



CONFIDENTIAL 



17 Aug. 1942 



VI. The Deputy Chief, Naval Staff Quartermaster Division dis- 
cusses the report made by Vice Admiral Krancke to the Chief of 
Staff, Naval Staff on 13 Aug. about the conference concerning the 
Westwall-like fortification of the west coast defenses. The 
Fuehrer declared that, due to the strategic situation, German 
forces cannot operate on more than one front. So far, first the 
treaty with Russia and then the Y/estwall enabled us to concentrate 
our entire strength on •one front. The Fuehrer's hope for a quick 
Russian defeat did not materialize, and no one can tell whether 
it will this year; in any event, the bulk of our forces will un- 
doubtedly have to remain in the east. For this reason it is 
necessary to increase the defenses In the v/es.t. Only if the 
coastal defenses are developed into a fortress protecting the west 
from any attack, can Germany hold the coast safely with compara- 
tively few divisions and defend it effectively against any land- 
ing attempts; such attempts might even be entirely discouraged 
by these measures, and this would be the most desirable effect. 
The most precious thing of all is a German life. The blood 
saved by the erection of this fortress is worth the billions to 
be spent. In the beginning, it will presumably be necessary to 
use the entire operational reserve in order to annihilate air- 
borne landing troops. Should a landing be made thereafter on the 
coast after very heavy air attacks, the coast would have to be 
strong enough to hold out on its own for weeks. This can be done 
only in well-fortified strongholds like the Westwall fortifications 
Field fortifications are by no means adequate. They would not 
suffice against heavy air raids or tanks. No air forces can be 
withdrawn from the east, and it must be expected that the enemy 
will have air superiority in the west. The submarine warfare and 
the transport of supplies by sea must be maintained. This is a 
prerequisite to victoryl The submarine bases and the most im- ' 
portant. harbors must be developed into real fortresses. Also those 
harbors where the enemy might be expected to unload his supplies 
of heavy armament, as well as those serving as bases for the German 
naval defense forces, must be developed In the same manner. The 
list submitted by the Naval Staff will serve as a guide. These 
bases must also be made safe against attacks from the rear. The 
Fuehrer has in mind a belt of pillboxes round the harbor, with a 
radius of approximately 10 to 20 km, all covered with a thick 
layer of concrete and armor. For this purpose the Navy should 
hand over any unused armor, including the barbettes for the 40 cm. ' 
turrets which will never be installed on ships anyway. After the 
war there will be enough productive capacity available to replace 
the armor in time. All command posts must likewise be protected. 
Not the fortification but the soldier must do the fighting. He 
must therefore be protected against the heaviest type of air 
attacks, and must also be able to sleep well. For this reason all 
soldiers must be quartered inside the forts. The batteries must 
not be destroyed prior to the landing, when they will be needed, 
and should therefore be so well protected as to make them safe 
even against the heaviest bombs. So far, this has been done only 
in isolated cases, and there must be a change. The concrete top 
must be at least 2 to 3.5 meters thick. In this connection, the 
Fuehrer pointed to the Insufficient concrete covering of the naval 
installations, whereupon Vice Admiral Krancke pointed out that the 
Army installations on the coast are not stronger than those of the 
Navy. Two thirds of the pictures of "foolish" installations shown 
by General Jacob were photos of Army installations but were pre- 
sented to the Fuehrer as belonging to the Navy. The case has been 
clarified. 

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CONFIDENTIAL 
17 Aug. 1942 

It will now be necessary to examine our installations from this 
point of view and, first of all, to improve those still under con- 
struction. Mounts for range finders should be placed under armor- 
plated hoods. Embrasures should be very small. All entrances 
must be well protected. The installations should be made safe 
against being smoked out, even by means of flame throwers. They 
should be protected against tanks by anti-tank gun emplacements 
to which anti-tank troops could be brought up. ^he medium batteries 
are to be supplemented by light batteries which can be used as 
anti-aircraft guns in case of air attacks and as anti-tank guns 
in case of land attacks (two-way training). The purpose of all 
these measures is to achieve the highest defensive strength with 
as little personnel as possible. Light batteries of all calibers 
should be used to protect the shore against enemy landings in the 
vicinity of the heavy batteries. Flame throwers used from in- 
side the fort are very effective as a defense against assault de- 
tachments . 

In all (in France and Holland) 15,000 fortifications are to be 
built, with each of the 10 most important naval bases to be pro- 
tected by 400 fortifications. Tbe position of the heavy artillery 
concentrated near Cape Gris Nez must also be protected by 1 a belt 
of fortifications. General Jacob i g to work out the details in 
cooperation with the Navy. 

The system of pillboxes inside the belt should be as wide as 
possible. Assault guns and tanks for counterattacks are like- 
wise to be emplaced in concrete pillboxes. 

Preparations for the construction of these pillboxes will take 
some time. In the meantime Speer will push the completion of the 
submarine pens. Only in Bordeaux will the completion be some- 
what delayed (4 weeks); in other places the work will be finished 
a little earlier. 

VII. On orders from the Naval Staff Quartermaster' Division, the Na- 
val Shore Command Willi has been renamed Naval Shore Command, 
Caucasus . 

VIII. Report by the Chief. Foreign Affairs Section, Naval Staff 
Operations Division : 

1. The Germans from Guatemala are not on board the Portu- 
guese steamer which left Baltimore, because there was a traffic 
delay in Mexico, for which allegedly nobody is to blame, and they 
were unable to reach the ship in time. 

2. The Armed Forces High Command has approved the voyage of 
the motor ship CEFHEE from Dakar to Saigon, as requested by the 
French. For details concerning precautionary measures see War 
Diary, Part C, Vol. VIII. 

In a Very Restricted Circle ; 

IX. 1. The Chief, Operations Branch, Naval Staff Operations 
Division reports on the disposition of submarines in the Mediter- 
ranean. The report about the departure of the FURIOUS in easterly 
direction proves that it is necessary to keep the submarines in 

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CONFIDENTIAL 



17 Aug. 1942 



the western Mediterranean. A new order, cancelling the previous 
authorization by telephone, is therefore issued to the Commander, 
Submarines, Italy, with copy to the German Naval Command, Italy, 
directing him to send no more than 2 submarines to the western 
Mediterranean, after 4 have been sent to the eastern Mediterranean, 

The Chief, Naval Staff agrees. 

2. a. Our recent submarine losses show an extraordinary 
increase. 10 boats were lost in July and 7 so far in August. The 
Naval Staff attributes the loss of 4 of these 17 submarines to air 
attacks on the Bay of Biscay where enemy planes also badly damaged 
2 German and 1 Italian submarines. 

b. The supply ship UCKERMARK, which departed from La 
Rochelle on 9 Aug. to supply the auxiliary cruisers v and serve as 
a blockade-runner, also had to interrupt her voyage and re-enter 
port after having been repeatedly attacked by a British plane be- 
tween the French coast and 8° W. The extensive blockade-runner 
schedule starts with 9' ships which are to depart from western 
France in August and September. In addition, 2 ships have already 
departed from Japan and are expected to arrive in western France 
in October. 

c. The British Air Force can harass or even stop com- 
pletely the blockade -runner service, the importance of which for 
the German war economy, especially as far as food supplies are 
concerned, is well known. 

The Naval Staff submits these remarks to the Air Force, Operations 
Staff, along with the figures on submarine losses and damages, as 
a further argument to support its request for more planes for the 
Bay of Biscay. (Copies to the Armed Forces High Command Operations 
Staff and the Permanent Representative of the Commander in Chief, 
Navy at the Fuehrer Headquarters.) At the same time, the Naval 
Staff requests the Air Force Operations Staff to make known its 
intentions in this respect. 

Recent submarine losses: 



June 1942: 
July 1942: 



submarines U "652" and U "568" in the Mediterranean 

submarines U "502" and U "-751" sunk by planes in 
the Bay of Biscay; furthermore, U "158", U "157", 
U "701", U "90", U "136", U "215", U "153", and 
U "576" 



August 1942: 



3. 

the new 

German 
in time 
manning 
area, 
matter, 
ingly . 



submarines U "213" and U "578" sunk by planes in 
the Bay of Biscay, U "588", U "210" and U "379" 
lost during the operations against convoys in 
the North Atlantic, and U "166" lost off the 
Mississippi estuary 

According to a report from the German Naval Command, Italy 
Rommel offensive is scheduled to begin on 28 Aug. The 
Naval Command, Italy requests that steps be taken to dispatch 
the 4 requisition detachments as well as the personnel for 
the patrol vessels which will presumably be needed in that 
The Naval Staff Quartermaster Division will take up the 
The German Naval Command, Italy is being notified accord- 



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CONFIDENTIAL 
17 Aug. 1942 

4. The Naval Liaison Officer to the Army High Command re- 
ports on plans for execution oi operation "Bluecher II". The 
operation will presumably be carried out on 15 or 16 Aug., de- ' 
pending on the enemy situation. The crossing is to be arranged 
primarily as a transport operation. For reoort and map see 
1/Skl 1596/42 Gkdos. Chefs, in File "Bluecher". 

X. In reply to an inquiry by the Ch^ef, Naval Staff, the Chief 
of Staff, Naval Staff tentatively expresses his opinion about the 
employment of the naval forces from the Norwegian theater as fol- 
lows: It is not to be expected that the enemy forces will land 
in northern Norway during the winter. Consequently, there will 
be no vital need for keeping the ships in that area. If kept 
there, their presence will have no other effect titan that of a 
"fleet in being". If this, too, is dispensed with then it will 
be possible to withdraw the large ships, with the 'exception of the 
SCHEER, to Germany. Such action is desirable for its psychological 
effect on the crews, etc., but especially because it would release 
the destroyers for operations in the west area. In addition to 
entering shipyards, the ships could be used for training purposes 
in the eastern Baltic Sea. The SCHEER might be left in the north 
area from where she could depart for an operation in the Atlantic 
whenever necessary. 

The Chief, Naval Staff agrees in principle with these conclusions. 
The Naval Staff is investigating all the aspects of the problem. 



Special Items: 

I. For the opinion and the directive of the Naval Staff con- 
cerning the shipyard period of the SCHEER and the effect on the 
date of completion of the cruiser EMDEN see l/skl I op 20153/42 
Gkdos. Copy no. 4 is in V/ar Diary, Part C, Vol. I. 

In accordance with this instruction, Group North and the Fleet 
are directed to prepare in advance the transfer of the SCHEER to 
Germany for shipyard repairs after she has completed operation 
"V/underland" . The Naval Staff Quartermaster Division is being 
notified to this effect. 

II. In view of the fact that from now on shipyard vrorkers are 
to be made available to the Navy, the Commander in Chief, Navy 
ordered the Naval Construction Division on 11 Aug. ..to keep him 
informed about the projects that can be completed by the allocated 
number of workers. In this connection, the Naval Staff Opera- 
tions Division calls the attention of the Naval Staff Quartermaster 
Division to the fact that, aside from the effect of the manpower 
problem on the execution of the plans, it is also necessary to 
take into account the curtailment of the Navy's shipyard capacity 
resulting from the concessions which the Naval Construction Divi- 
sion made to the director of the Chief Committee for Naval Con- 
struction and to the Reich Commissioner of Maritime Shipping with 
aegard to the shipyards in tho Netherlands and in Nikolayev. For 
cooy of the minutes of the conferences held on 6 and 7 Aug. see 
1/Skl 27497/42 geh. in War Diary, Part B, Vol. V. 

The Naval Staff Operations Division requests the Naval Staff 
Quartermaster Division to keep it informed about the matter. 

-200- 



CONFIDENTIAL 
17 Aug. 1942 

The Naval Staff Operations Division views with 
considerable concern the fact that the Navy is being 
restricted more and more in many directions. 

III. The Army General Staff has transmitted the report of the 
Military Attache in Stockholm of 14 Aug. stating Sweden's views 
about the German operations. For copy see l/Skl 28146/42 geh. 
in War Diary, Part B, Vol. V. 



Situation 17 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

South Atlantic : 

Radio intelligence reports that on 9 Aug. escort vessels 
en route with the U.S. convoy AS 6 probably were ordered to pro- 
ceed to St. Helena Island and to remain there ready to be called 
out against a raider. 

Freetown issued a warning about the presence of a submarine some 
680 miles west of the Congo estuary. No German submarine is in 
that area. 

According to a report from Punta Arenas, a loaded U.S. tanker com- 
ing from the Pacific entered the Atlantic Ocean. This report is 
another indication of the evidently increasing use of the Magellan 
Strait -for traffic between Chile and Australia. 

2. Own Situation : 

As for ship movements in the South Atlantic, the few 
available course instructions issued by the enemy in August pre- 
sent the same picture as the results of the reconnaissance voyage 
of ship "23", that is: 

a. In the eastern part of the South Atlantic the ships move 
at a distance of 600 miles from the African coast. 

b. Ships en route from the Cape to Brazil and the West Indies 
proceed on courses west and south of the line connecting 33° S, 10° E 
with 17° 30' S, 22° 30« W. 

c. Ships moving between Montevideo and Freetown pass west of 
70 S, 25° W. 

The Naval Staff assumes nevertheless that some unescorted ships, as 
for example, the ARABISTAN; still make reconnaissance runs through 
the central part of the South Atlantic, while convoys continue to 
sail on the direct course between Freetown and the Cape. Those war- 
ship movements which have so far been discovered were primarily 
connected with escort operations and reconnaissance along the con- 
voy routes. Lack of information makes an estimate of ship move- 
ments between the Cape and La Plata impossible at the present moment, 

All vessels in foreign waters were informed about the foregoing 
opinion as requested by ship "28" via Radiogram 2239. 

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CONFIDENTIAL 
17 Aug. 1942 

Further information about the enemy situation was sent out via 
Radiograms 1817, 1951, 2101, and 2300. 

The Naval Attache in Madrid has reported the positions of ships 
in the blockade area and in the area bounded by 30° N, 30° W. (See 
Telegram 1G30. ) 



II. Situation V/est Area 

1. Enemy Situation ; 

Air reconnaissance reports that in the morning 8 patrol 
vessels and 8 destroyers were in Dover. In the afternoon 3 light 
cruisers of the C class and 1 destroyer were sighted on a 20° 
course 60 miles south of the Scilly Islands. Likewise in the 
afternoon 3 steamers, 1 destroyer, and several patrol vessels were 
proceeding on zigzag courses 30 miles east of Lizard Head. 

Photographic reconnaissance showed 2 destroyers, 2 patrol vessels, 
5 passenger ships, 10 steamers, some 200 barges, and 8 large tugs 
in Southampton. About 70 barges were in Portsmouth at the same 
time. 

2. Own Situation ; 

Atlantic Coast ; 

Nothing to report. 

Channel Coast ; 

At 0018 the burning eneny ship fired upon by the batteries 
"Grosser Kurfuerst" and M2 was sunk in quadrant AN 79. 

Shortly before completing their mine mission in the Strait of Dover 
the 10th and 12th Motor Mine Sweeper Flotillas had 'an engagement 
with British PT boats, which, however, did not prevent them from 
carrying out the operation according to plan. Prior to that, the 
flotillas were under fire from the long-range battery from 2155 to 
2210. Numerous hits and blazing fire were observed on an enemy 
motor gunboat. At 2313 a detonation was heard at the southern end 
of the recently laid minefield. 3 more detonations v.-ere heard later. 
It may therefore be assumed that an enemy vessel struck a mine. Of 
our vessels, the motor mine sweeper R "184" is missing. According 
to radio intelligence, the vessel was sunk and some of the crew were 
taken prisoner. (See Enemy Situation 16 Aug.) 3 vessels of the 10th 
and 2 vessels of the 12th Motor Mine Sweeper Flotillas were hit. 
Casualties are light. For details see Telegrams 1020, 1715, and 
2355. Motor mine sweeper R "184" was lost track of mainly because of 
the failure of the microwave equipment. It is very probable that 
the enemy has discovered the new minefield. 

The 5th PT Boat Flotilla has carried out the mine operation in 
quadrants BF 2329 and.BF 2383 according to plan. 



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17 Aug. 1942 

III. North .Sea, Norway, Arctic Ocean 

1.. North Sea : 

Enemy Situation : 

No noteworthy reports have been received. 

Own Situation ; 

No incidents were reported except for the fact that 2 
ground mines were swept off Borkum and ScLierrnonnikoog. 

2. Norway, Arctic Ocean : 

Enemy Situation : 

Radio intelligence reports that on the afternoon of 16 
Aug. 1 vessel was at. sea in the Archangel area and on the after- 
noon of 17 Aug. 2 British vessels were located in the same area. 
4 Russian submarines are assumed to have been operating in the 
area between Varanger Fjord and Tromsoe. 

Air reconnaissance in the Arctic Ocean failed to yield any results 
of tactical importance. 

Own Situation : 

Mine-sweeping and convoy operations in the area of the 
Commanding Admiral, Norway proceeded without incidents. 

In the Pechora Bay submarine U "200" sank 2 tugs and 2 lighters, 
one of them with about 300 soldiers on board. 

Operation "W under land" is proceeding according to plan. Submarine 
U "601" is to meet the SCHEER at 78° N, 72° E after 0000 on 19 Aug. 
The submarine is to radio a different rendezvous point if ice con- 
ditions make a change necessary. 

The Naval Staff hopes that it will not be necessary 
to send a radio message because it miaht jeopardize 
the whole operation. This possible development 
should have been covered in th-e original orders. 

The BV flying boat towed by submarine U "255" capsized and sank. 
The crew was rescued. 

With regard to the alleged location of convoy PQ, 18, the brief re- 
port of submarine U "405" states that on 6 Aug. at 0035, 7 to 9 
steamers were sighted from a distance of 500 to 600 meters, in 
quadrant AA 8946 close to the ice boundary. The submarine was 
forced to submerge because of an approaching escort vessel. Sounds 
were heard by hydrophone, but after surfacing an hour later she 
failed to sight anything in the thick fog despite a systematic 
search. (See Telegram 1840.) Further information is required and 
will be obtained by Group North. 



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CONFIDENTIAL 
17 Aug. 1942 

IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 

On 2 and 5 Aug. air reconnaissance spotted a total of 32 
submarines in Kronstadt and Leningrad, as compared with 52 observed 
on 24 Apr. The 20 missing submarines are either at sea or have 
been sunk. 

2. Own Situation : 

In the night of 16 Aug. about 15 enemy vessels were 
located in the Baltic Sea. It is assumed that mines were dropped 
in the Baltic Sea entrances, between Sassnitz and Trelleborg, in 
the area around Ruegen, as well as in the Pomnersche Bay and the 
Gulf of Danzig. Night fighters shot down 2 planes. 

At 0646 the steamer WURI of the Oslo-Aalborg convoy carrying about 
1,000 men on leave sank v/ithin 30 minutes after hitting a mine 
southeast of Halsbarre. Since the last enemy incursions over this 
area the route was searched for ground mines 5 times, the last 
time on 17 Aug. just before the convoy passed through it. The 
point where the detonation occurred lies 450 meters v/est of the 
route. Casualties are apparently light. 

On 15 Aug. 3 enemy bombers and 7 fighters attacked a coastal 
patrol boat in Ust'Luga in the Gulf of Finland. 

Unescorted Russian vessels were sighted southeast of Tytersaari. 
The vessels withdrew when fired on. Mine- sweeping and convoy 
operations in" the area of the Commander, Mine Sweepers, Baltic 
Sea proceeded according to plan. A Finnish source reports that 
11 enemy planes were shot down on 16 Aug. In the last 4 days 
Finnish fighters alone destroyed 25 enemy planes. 

On the basis of the Naval Staff's communication about the situa- 
tion in the Gulf of Finland with regard to air operations (see 
War Diary 16 Aug.), the Commander in Chief, Air has directed that, 
beginning 18 Aug., the 1st Air Force, acting in direct accord 
with Group North, shall employ the 1st Squadron of the 54th 
Fighter Wing stationed in Finland for the protection of naval op- 
erations in the Gulf of Finland. (See Telegram 2300.) 

In the night of 14 Aug. an Italian subchasej? sank a Russian gun- 
boat in Lake Ladoga north of Morya Bay. 



V. Merchant Shipping 

The unceasing efforts of the Naval Staff to induce the Swedes 
to install degaussing gear on the ore steamers sailing to Rotter- 
dam have so far produced only little or no effect. Only 6 vessels 
of the Graengesberg Company have been equipped with degaussing 
gear so far. According to a communication from the Foreign Office, 
the Swedish Foreign Ministry has now made known that preparations 



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CONFIDENTIAL 
17 Aug. 1942 

have been under way for some time for demagnetizing ships. Whether 
all Swedish ships will be equipped with degaussing gear will de- 
pend on the outcome of the negotiations between Swedish experts 
and Danish and German authorities in Copenhagen. 



VI. Submarine Warfare 

1. Enemy Situation : 

Air reconnaissance was particularly active over the Bay 
of Biscay. An inbound submarine v/as reported 195 miles southwest 
of Brest. A number of submarine sighting reports were intercepted 
from off the U.S. east coast and in the West Indies area. 

2. Own Situation : 

For operations of the submarines stationed in Norway see 
Situation Arctic Ocean. 

§ 

In the North Atlantic, the Commanding Admiral, Submarines is at- 
tempting by means of dummy radio signals from 2 submarines to make 
the enemy convoy steer a course which would bring it directly 
within the reach of group "Loss". This attempt presupposes that 
the enemy makes use of our submarine radio messages in directing 
his convoys. The results of this experiment remain to be seen. 
No successes were reported from the North Atlantic or from the 
area off the American east coast. 

•In the West Indies, submarine U "658" intercepted a convoy con- 
sisting of 15 ships south of Windward Passage and sank 2 steamers 
of 8,000 and 6,000 GRT in a surface attack. In addition, 1 cor- 
vette, was probably hit by a torpedo. Submarine U "553" sank 2 
steamers and 1 tanker totalling 22,000 GRT from the same convoy. 
On 15 Aug. submarine U "598" probably sank a tanker of the SAN 
MELIT0 class west of Windward Passage. The Commanding Admiral, 
Submarines estimates her tonnage at 8,000 GRT. 

After a prolonged chase submarine U "108" succeeded in sinking 
the gasoline tanker LOUISIANA (8,587 GRT) in the area north of 
Cayenne. 

The submarines in the South Atlantic also reported a number of 
successes for today. Submarine U "566" sank the Norwegian steamer 
TRITON (6,710 GRT) and a 5,000 GRT steamer from a northbound con- 
voy of 14 steamers and 6 destroyers in a daylight attack. The 
operation against this convoy is being continued. 

On 15 and 17 Aug. submarine U "507" operating near the Brazilian 
coast with the authorization of the Commanding Admiral, Submarines, 
sank 2 passenger steamers of 6,000 and 5,000 GRT and a 3,500 GRT 
steamer, as well as 2 steamers of 2,200 and 3,000 GRT, off Bahia 
and north of there. The submarine had special instructions- not 
to enter territorial waters. Otherwise the sinking of Brazilian 
merchant vessels is in accord with the prevailing regulations. 

There is no doubt that these sinkings which un- 
questionably affect also Brazilian vessels will 
lead to a further deterioration in relations be- 
tween. Germany and Brazil. 

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CONFIDENTIAL 
17 Aug. 1942 

In the western Mediterranean, submarines U "SSI" and U "73" are 
again being sent into action in quadrant CJ 9178 and 9155 re- 
spectively. In the eastern Mediterranean, submarine U "83" re- 
ported sinking an auxiliary cruiser of about 12,000 GRT from a 
fleet task force, ^he submarine requires immediate help since 
she is unable to submerge. 

Together with the above auxiliary cruiser, the total tonnage re- 
ported sunk today amounts to 95,997 GRT, without counting the 
tugs and lighters in the Arctic Ocean. In this connection, it 
should be mentioned that as it happens the majority of the sub- 
marines operating in the Atlantic Ocean did not contribute a 
single sinking. 

For details see supplement to the submarine situation in War 
Diary, Part B, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity ; 

On the night of 16 Aug. our planes attacked localities 
on the southern coast of England with observed effect. During 
the day fighter bombers attacked Swanage and Coworack. In the 
night of 17 Aug. a few of our planes attacked targets in England. 

On the same night 100 enemy planes flew over the northwestern 
part of the Reich but did not concentrate on any specific point. 
During the afternoon enemy planes were active over western France. 
Bombs were dropped in the Rouen area, 

2 . Mediterranean Theater : 

The present lack of adequate fighter protection makes 
it very difficult to fight the enemy air forces and to protect 
the convoys with the available forces. The Air Commander, 
Africa carried out reconnaissance and fighter operations, as well 
as fighter-bomber attacks against concentrations of motor vehicles 
on the central sector of the front. 

3. Eastern Front ; 

Reconnaissance flights were carried out over the Black 
Sea. No other reports have been received. 



VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

The ARGUS left dock in Gibraltar on 16 Aug. Located in 
the harbor were 1 vessel of the ILLUSTRIOUS class, the ARGUS, the 
NELSON, 2 vessels of the FIJI class, one of them in dock, 3 de- 
stroyers, 1 auxiliary cruiser, at least 5 submarines, 28 steamers, 
and 9 tankers. 

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CONFIDENTIAL 
17 Aug. 1942 

According to an intelligence report from Spain of 16 Aug., the 
FURIOUS is -said to have taken aboard 35 Hurricanes during the 
night. It is rumored that the aircraft carrier departed toward 
the east. 

According to a report by a French pilot, 1 battleship, 1 aircraft 
carrier, and 5 to 8 unidentified vessels were proceeding 40 miles 
north_ of Algiers at 0900 on 17 Aug. The German Naval Command, 
Italy reports that it is not yet possible to see how the situa- 
tion is going to develop. For the time being it is assumed that 
the carrier is transporting planes to Malta. According to • 
another French report, an escort force of smaller vessels joined 
the aircraft carrier at the previously mentioned position; in 
addition to the battleship, 7 destroyers were reported, the entire 
force heading east. 

Photographic reconnaissance carried out over Valletta at noon 
showed no change in the total of 2 destroyers, 3 submarines, 2 
mine sweepers, 3 corvettes, 4 steamers, and 1 large tanker in that 
harbor. Radio intelligence observed lively submarine and air 
activity. At noon messages about submarine operations were in- 
tercepted from the Malta and Alexandria areas. 

Submarine sighting reports were issued off the eastern coast of 
Sardinia and southwest of Navarino. 

The Armistice Commission, France has transmitted a French report 
about statements by .survivors from British ships, according to 
which their convoy consisted of 12 merchant vessels, including 
at least 1 tanker. Each vessel was loaded with gasoline, petro- 
leum, edible oil, ammunition, soap, and food. When asked by the 
German Armistice Commission, France whether the number of steamers 
in the convoy was not rather 21, the French source repeated that 
the prisoners spoke of 12 steamers. It remains to be seen how 
correct this statement is. Further statements assert that there 
was no American aircraft carrier in the convoy. On the other 
hand, a U.S. light vessel is said to have participated in the 
night battle of Kelibia. The British cruiser KENYA also took part 
in that battle. 

2. Own Situation, Mediterranean ; 

An Italian submarine which has returned to base reports 
that on the morning of 14 Aug. she fired 5 torpedoes on 2 cruisers 
35 miles northeast of Algiers. 2 torpedoes were definitely heard 
exploding. One of the Italian PT boats which ran aground on the 
Tunisian coast on 15 Aug. is again afloat and has entered Trapani. 

In view of the present > enemy situation in the western Mediter- 
ranean, our departing submarines have turned back (see Submarine 
Warfare). In anticipation of further events, a PT boat operation 
is being prepared for the night of 18 Aug. On 14 Aug. enemy 
planes attacked Tobruk without causing damage to harbor or naval 
installations. On the night of 16 Aug. enemy planes again dropped 
mines in the harbor of Marsa Matruh. 

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CONFIDENTIAL 
17 Aug. 1942 

The Italian submarines were recalled from the operations area, 
evidently even before the enemy reports from the western Medit- 
erranean were made known. 

For our submarine success in the eastern Mediterranean see Sub- 
marine Warfare. 

The Naval Staff has ordered the German Naval Command, Italy to. 
transmit immediately and regularly all incoming information on 
the courses steered by the last Mediterranean convoy, particular- 
ly in the area between Cape Bon and Malta. The Naval Staff is 
also very anxious to receive promptly all the available prisoner 
statements, particularly about the aforementioned courses, the 
names, ports of departure, cargoes and destination of the steamers, 
any special orders, orders to the escort forces, references to 
the difficulty of the operation, and the like. Furthermore, it 
is not clear whether the convoy was escorted by 3 or by 2 battle- 
ships. The German Naval Command, Italy is requested to transmit 
its interpretation of photographs to the Naval Staff. (See Tele- 
gram 1818. ) 

It is to be hoped that this information will 
yield a clear picture of the actual assignment 
of the convoy. 

3. Transport of Supplies to North Africa : 

On 16 Aug. an enemy submarine fired on and badly damaged 
an auxiliary sailing vessel off the eastern coast of Sardinia. 

On 17 Aug. enemy torpedo planes set afire the escort vessel PILO 
50 miles south of Pantelleria. A destroyer was slightly damaged 
and suffered considerable casualties. 

In the afternoon an enemy submarine torpedoed the motor ship 

BIXIO 12 miles- southwest of Navarino. Attempts are being made 

to bring her in to Navarino. Other convoys proceeded as scheduled. 

17,276 tons were unloaded in Tripoli in July, 17,518 tons, includ- 
ing 7,814 - tons of German cargo, were loaded on coastal vessels in 
that harbor. This shows that all the incoming supplies were sent 
on to the front. 

In Tobruk 530 tons were unloaded on 15 Aug. and 680 tons on 16 Aug. 
517 tons were unloaded in Marsa Matruh on 16 Aug. 

4, Area Naval Group South : 
Aegean Sea ; 

No incidents were reported. 

Black Sea ; 

Enemy Situation : 

In the area between Sochi, Sukhum, and Poti air recon- 
naissance sighted 2 tankers .under escort on a southeasterly course 
and the cruiser KOMINTERN heading for Poti. Some 50 patrol ves- 
sels were located in the canal north of Temryuk. Lively ship 

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CONFIDENTIAL 



17 Aug. 1942 



traffic was observed between Tuapse and Sukhum. 7 steamers, 4 
patrol vessels, 1 PT boat, and 2 destroyers were en route to the 
southeast, while 1 steamer and 1 tug were proceeding northward. 
According to photographic reconnaissance, 1 tanker, 6 steamers, 
and several small vessels were in Sukhum. 

The Communications Intelligence Officer, Black Sea at Group South 
has compiled a supplementary list of war and merchant ships in the 
Caspian Sea on the basis of prisoner statements. For copy see 
l/Skl 28058 geh. in War Diary, Part C, Vol. XlVa. 

Own Situation : 

According to a communication from the German Embassy in 
Ankara of 15 Aug., the report that 15 Russian vessels have en- 
tered a Turkish port has not been confirmed. 

Enemy submarines unsuccessfully attacked the tug FORSCK south of 
Tuzla on 16 Aug. and the ROMULUS south of Odessa on 17 Aug. PT 
boats remained inactive because of bad weather. 

On 16 Aug. an Air Force Siebel ferry struck a mine off Mariupol. 
The ferry has a leak aft. For the time being, no iron ore trans- 
ports are allowed to enter or leave Mariupol. Convoy operations 
proceeded as planned. 

5. Special Items : 

(1) After an investigation, Group South reports that the 
Army's accusations concerning transport operations in the Sea of 
Azov are incorrect, since there are no Army ferries at all In the 
Taganrog area; Army Group A has tied up all such vessels for opera- 
tion "Bluecher". 

The Group reports further that on 1 Aug. the route to Taganrog was 
searched for mines on the same day that the first sea transport 
got under way. Due to the enemy situation, the route from Tagan- 
rog to Azov could not be swept before 4 Aug. together with the 
first transport on this route. (See Telegram 2015.) 

This shows that the rumors derogatory to the 
Navy are completely without foundation. The Na- 
val Liaison Officer to the Army High Command 
has been informed to this effect. 

(2) Via Telegram 1951 the Naval Staff Quartermaster 
Division sends Group South the requested information on the suit- 
ability of the small coastal mine-laying craft for the assignments 
in question (see War Diary 51 Jul.). 



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CONFIDENTIAL 
17 Aug. 1942 

IX, Situation East Asia 

No reports of interest have been received. 



X. Army Situation 

1. Russian Front ; 

Army Group A ; 

The Rumanian III Army Corps is engaged in a fight with 
strong Russian rear guards north of the Kuban River southwest of 
Slavyansk. Krimskaya and Abenskaya were captured. South of 
Krasnodar the enemy continues to offer stiff resistance. Our ad- 
vance detachments are engaged in bitter fighting north of the 
Klukhor Pass. The outflanking maneuver aimed at opening the pass 
is in progress. The forces advancing on the Elbrus Mountain are 
now south of the mountain at the Bashi Pass. Advance units of the 
III Army Corps are south of Elista. 

Army Group B : 

The right wing of the 4th Panzer Army has pushed west- 
ward and has encircled enemy forces at the Abganerovo railroad 
station. Our forces succeeded in widening the bridgehead on the 
Don River northwest of Stalingrad and in holding it against enemy 
attacks. The enemy brought up new forces south of Krimskaya. Near 
Serafimovich, the enemy continues his attempts to reach the 
southern bank of the Don River. Enemy attacks near the mouth of 
the Khoper River and west of Svoboda were repulsed. Fighting in 
the Voronezh area continues. Southeast of Yelets the enemy is 
trying to widen his penetration in westerly direction. 

Central Army Group ; 

The operation in the Sukhinichi area is making slow pro- 
gress due to stubborn enemy resistance and difficult terrain. 
Weather conditions do not permit our air support to be fully 
effective. Some of the enemy forces have launched a count eroffen- 
sive. 

All enemy attacks east of Vyazma were repulsed. Enemy attacks in 
the breach near Rzhev continue. Losses are running high on both 
s id e s . 

Northern Army Group ; 

Fighting is going on north of Demyansk and north and 
south of the land bridge leading to the II Army Corps, as well as 
near Soltsy. Enemy troops succeeded in penetrating the lines of 
the SS Police Division southeast of Leningrad. 

2. Finnish Front ; 

The enemy continues to dig in in front of the 20th Army. 
An increased number of supply transports were observed arriving at 
the Rybachi Peninsula. 



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CONFIDENTIAL 
17 Aug. 1942 

3. North Africa : 

• No incidents were reported. 



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CONFIDENTIAL 



18 Aug. 1942 



.— 



Items of Political Importance 

In connection with the Moscow conferences it should be mentioned 
that, according to a statement by Harriman, President Roosevelt 
will endorse any decision made by Churchill in Moscow. 

U . £? . o . f\. « 
- * 

The Tass Agency brings an interesting official communique accord- 
ing to which Molotov has been appointed the first of the 13 deputy 
chairmen of the Council of the People's Comraissar6, with the pur- 
pose of easing the burden on Stalin. 

It remains to be seen whether this is purely an 
organizational formality or not. 

U.S.A. ; 

Secretary of State Hull told the French Ambassador that the U.S.A. 
cannot maintain friendly relations with the Laval government 
because Laval has publicly declared that he favors a German victory. 

The proposed law requiring war service in industry, designed to 
solve the labor problem, is another indication that the democratic 
U.S. is resorting to totalitarian methods. 

Brazil : 

An official report from Rio de Janeiro states that Axis submarines 
sank 3 Brazilian ships within the last three days. The steamers 
in question are the BAYPANDI , the ARARAQUARA, and the ANIBAL 
BENEVOLO. The BAYPANDI is said to have been en route to northern 
Brazil with 800 soldiers on board. The Ministry of the Navy has 
decided to employ all Brazilian warships for the protection of 
coastal shipping. 



Conference on the Situation with the Chief. Naval Staff 

I. Report by the Chief. Naval Staff Communications Division : 

It is not assumed that the loss of motor mine sweeper R "184" 
will result in a disclosure of our codes because, as reported by 
radio intelligence, nobody was able to board the burning vessel. 

A further report deals with plans to install additional radar sets 
in the area between Pantelleria and Sicily and, if necessary, on 
the coast of French Africa. 

II. Report by the Chief. Naval Ordnance Division : 

1. It is proposed to investigate whether the 28 cm. turrets 
of the GNEISENAU should not be installed in the west area rather 
than in Norway. The preparations made in Norway are such that 
they could be utilized for other turrets just as well. 

2. Since it has definitely been decided to convert the 
SEYDLITZ, it is necessary to investigate whether and how the 4 
turrets of this ship should be distributed. 

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CONFIDENTIAL 
18 Aug. 1942 

3. The Fuehrer's order to hand over for use in western 
fortifications all armor plating and barbettes not immediately 
needed by the Navy, thus abandoning the battleship model 41, will 
make the advance work done by Krupp on the gun turrets and barrels 
completely useless, although this work would otherwise have per- 
mitted completion of 4 instead of 2 such ships 5 years after the 
keel 8 were laid. It must be kept in mind that the planned large 
expansion of the Krupp Company, necessary for the development of 
our fleet, cannot be started before the end of the war. However, 
on the capacity of Krupp depends how much armament can be produced 
in the 60 months needed to build each ship. Consequently, every 
month which was utilized for producing the necessary armament 
represented a gain with regard to the number of ships constructed 
simultaneously. The Chief, Naval Ordnance Division suggests that 
these conclusions be presented to the Fuehrer. 

III. The Deputy Chief, Naval Staff Quartermaster Division submits 
the following schedule for ships entering shipyard: 

TIRPITZ: From end of October till January. 

LUETZOW: Till second half of October in Kiel. (Only structural 
repairs will be made, since no preparations have been 
made for engine repairs, and the necessary Diesel 
electric units are not available in any case.) 

SCHEER: 6 weeks in Wilhelmshaven, starting immediately on ar- 
rival. 

KOELN: No shipyard capacity is available for the necessary 
replacement of cables. 

LEIPZIG: Mid-October to December. This will include instal- 
lation of degaussing equipment which cannot be installed 
on the EMDEN because the capacity of the Wilhelmshaven 
shipyard originally set aside for this purpose will be 
used up by the SCHEER. 

NUERNBERG: Has just left the shipyard. Is assigned to training 
duty until the end of October. 

EMDEN: To leave the shipyard by 1 Oct. Thereupon training \ 
assignment. x 

In a Very Restricted Circle! 

IV. Report by the Chief. Operations Branch. Naval Staff Operations 
Division : 

1. Report on American press and radio accounts about the 
searoh for the German raider in the South Atlantic and on measures 
taken by our ships "23" and "28". 

2. The Air Force Operations Staff has transmitted the fol- 
lowing answer to the Naval Staff's request for allocation of planes 
to the Air Commander, Atlantic Coast for operations against enemy 
planes in the Bay of Biscay: 

"In view of the present air situation in the Bay of Biscay, whioh 
is known to be oritical and which exposes our submarines and 

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CONFIDENTIAL 



18 Aug. 194 2 



blockaie-runners to grave danger, the Commander in Chief, Air Force 
has reinforced a unit stationed on the Bay of Biscay coast with 
suitable planes. In addition, a long-range fighter group is being 
organized for the sole purpose of protecting our vessels in the Bay 
of Biscay. 

"The Naval Staff is requested to ask Group West to ooerate in 
direct cooperation with the 3rd Air Force Command as regards convoy 
protection in the Bay of Biscay." 

Group ,r est and the Commanding Admiral, Submarines have been notified 
accordingly. 

3. Report on the weather observation operation "Holzauge" 
as recorded in War Diary of 3 Aug. 

Weather expedition "Knospe" is to be picked uo sometime after 20 
Aug. The Commander in Chief, Air Force is unable to keep his 
promise to send a plane for this purpose; Group North plans to 
use a submarine instead, 

4. On 16 Aug. the 'German General at the Italian Armed Forces 
Headquarters transmitted to the Armed Forces High Command and the 
Army High Command a report giving the following estimate of the 
situation and of the condition of the African Panzer Army as of 

15 Aug. : 

Our situation, which continued critical until the early days of 
August, has eased. As far as personnel and materiel are concerned, 
the condition of the African Panzer Army has considerably improved, 
and its morale is high. 

The enemy must be expected to bring up substantial reinforcements 
to the front toward the end of August. In addition, another large 
contingent of reinforcements, for which the enemy will undoubtedly 
wait before launching his offensive, must be expected to arrive 
toward the middle of September. Until the end of August the Germans 
and Italians will have a certain superiority in tanks, as well as 
in heavy artillery. Up to that time, we will 6till have a fair 
chance of breaking through on the southern wing of the front. For 
this reason, Rommel and the Commanding General, Armed Forces, South 
consider the time around 26 Aug., "'hen the phase of the moon offers 
the best chances, as most propitious for an attack. A postponement 
would greatly reduoe our chances (on account of the enemy's superi- 
ority in the air) and the Axis forces "/ould have to wait another 4 
weeks for a full moon. 



Situation 18 Aug. 1942 
I. War in Foreign Waters 
1. Enemy Situation : 

South Atlantic : 

According to an intelligence report, American troop 



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CONFIDENTIAL 
18 Aug. 1942 

transports are being shipped to Africa via Charleston and New 
Orleans along the coast of Central and South America to Natal and 
from there to Gabon. A convoy of 5 to 6 transports is reoorted to 
leave every week. 

The Naval Attache in Buenos Aires reports that on 10 Aug. the QUEEK 
ELIZABETH departed from Rio de Janeiro in northerly direction. 

In spite of or as a result of the continuing lively discussion in 
the press about the chase after the German raider in the South 
Atlantic, official circles in Rio de Janeiro doubt that such a raid' 
exists and .consider the story a fabrication of Axis propaganda. 

The submarine warning issued on 17 Aug. for the area west of the 
Congo estuary was cancelled. 

According to a -message from Simonstown, on 16 Aug. an unidentified 
steamer reported a mine in the 100-fathom zone in a swept channel, 
presumably off Cape Town. 

Indian Ocean : 

Japanese planes again attacked 2 British steamers in 
the Bay of Bengal. 

2. Own Situation : 

Via Radiogram 2130 ship "10" is beine informed that the 
TANNENFELS will arrive at point "Kupfer-B" around 28 Aug. and that 
she will be able to take aboard the prisoners from ship "10". 
After taking over the supplies, ship "10" is directed to release 

the TANNENFELS for her voyage home. 

Via Radiogram 1536 all vessels in foreign waters are being informed 
of the operations against the enemy convoy in the western Mediter- 
ranean. 



II. Situation West Area 

1. Enemy Situation : 

No noteworthy reports have been received. 

2. Own Situation : 

Atlantic Coast : 

On 17 Aug. the blockade-runner WESERLAND departed as 
planned. Group West is in command. The fair weather with good 
visibility is unfavorable for a sucoe.ssful departure. At 1230 an 
enemy plane circled over the WESERLAND in quadrant BF 8684 causing 
her to steer back toward the east along the Spanish coast. Group 
West has ordered the ship to turn back again, if the enemy no longer 
maintains contact, and to try to break through once more within or 
along the borders of the Spanish territorial waters. In any event, 
forces of the Commanding Admiral, Defenses, West are posted in the 
St. Jean-de-Luz area, ready to bring her in, and the Air Commander, 



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CONFIDENTIAL 
18 Aug. 1942 

Atlantic Coast has been asked to make an inspection flight over 
the Spanish territorial waters, if possible, and to reoort position 
and. course of the Bhip upon landing. Group West ordered the 
UCKERIJARK to depart for the second time on 18 Aug. 

Channel Coast : 

From 0048 to 0158 the British battery at St. Margaret at 
"Cliff f fired 26 rounds at our coast without scoring a hit. The 
4th PT Boat Flotilla gave up its mine operation in the night of 
17 Aug. because of fog. For brief report see Telegram 0815. 

At 0230 the 18th Patrol Vessel Flotilla had an engagement with 
enemy motor gun boats. 1 enemy vessel was definitely sunk and 
one was probably sunk, while several others were set on fire. For 
brief report see Telegram 1300. 

Patrol vessel "406" sank in quadrant BF 9349 as a result of a mine 
hit. 



III. North Sen, Mnrwav, Am tin On Ran 

1. North Sea : 

- Enemy Situation : 

Lively reconnaissance activity was reoorted over the 
entire North Sea area. 

Own Situation : 

During the day enemy planes made isolated reconnaissance 
flights over the northwestern coast of Germany. Our fighters 
failed to make contact with the enemy. Convoy and patrol opera- 
tions in the area of the Commanding Admiral, Defenses, North pro- 
ceeded according to plan without incidents. 

The Commanding Aimiral, Defenses, North and the XII Air Corps have 
agreed upon the organization of night-fighter action against mine- 
laying enemy planes in the North Sea area. A similar arrangement 

exists in the area of the Commanding Admiral, Defenses, Baltio 
Sea. For details see Telegram 1135. 

The Naval Staff has no objections. 

2. Norway., Arctic Ocean : 

Enemy Situation : 

Air reconnaissance reported 1 battleship of the KING 
GEORGE V class, 2 heavy cruisers, 1 light U.S. cruiser, 2 destroy- 
ers, 4 tankers, and 8 steamers in the Hval Fjord. 2 large pas- 
senger shiDS, 1 tanker, 13 steamers, 1 U.S. destroyer, and other 
vessels were observed in the roadstead of Reykjavik. 



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CONFIDENTIAL 
18 Aug. 1942 

Own Situation : 

Mine-sweeping and convoy operations in the area of the 
Commanding Admiral, Norway proceeded according to plan without in- 
cident. On 17 Aug. an enemy submarine which had been sighted in 
quadrant AC 8425 was chased without success. A German convoy 
anchored temporarily in the Bas Fjord because of the submarine 
menace. Destroyer Z "23" departed from Trondheim in northerly 
direction. 

Operation "Wunderland" : 

3 destroyers of the 5th Destroyer Flotilla entered Tromsoe 
where they remain ready to be sent into action on 3 hours notice. 

The Admiral, Arctic Ocean ordered submarine U "456" to deliver am- 
munition to submarine U "209" in quadrant AT 7125 on 19 Aug. at 
1200. Prior to that, submarine U "456" is to reconnoiter the coasts 
north of 710 40 1 N, while submarine U "209" will do so south of 
that latitude. Submarine U "456" has been ordered to report com- 
pletion of the assignment by short signal, whereupon the 2 sub- 
marines will return to their previous areas of operations. 

The. Naval Staff would have preferred complete 
radio silence. 

Otherwise there 'was nothing to report. 



TV. SkagarraV, Raltin Srs TTnt.Tannfts, Raltin Sf»a 

1. Enemy Situation : 

No incidents were reported. 

2. Own Situation : 

Final losses from the steamer WURI have not yet been 
determined. 

Weather conditions hampered mine-sweeping operations in the area 
of the Commander, Mine Sweepers, Baltic Sea. Convoy operations 
proceeded as scheduled. 

2 of our mine sweepers drove an enemy submarine which had been 
spotted by a reconnaissance plane into the minefield "Seeigel 19". 
An explosion was observed 3 miles northwest of Tytersaari. 

In order to speed up preparations for. the 6th PT Boat Flotilla 
operations in the Baltic Sea, the Naval Staff has ordered the Com- 
mander, PT Boats to dispatch an officer suited for this task to 
Group North. Basically the Naval Staff upholds its intention to 
employ the 6th PT Boat Flotilla in the west area. Its temporary 
assignment to the Commander, Mine Sweepers, Baltic Sea for use in 
the Gulf of Finland will only be ordered if the situation does not 
permit any other course. A directive is therefore issued to Group 
North, the Fleet, and the Commander, PT Boats, with copies to 



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CONFIDENTIAL 
18 Aug. 1942 

Group West and to the Commander, Mine SweeperB, Baltic Sea, re- 
questing that the preparations for operations of the 6th PT Boat 
Flotilla in the west area rece ive' priority , while the Baltic Sea 
assignment of the flotilla is to be prepared only as far as it 
does not interfere with the preparations in the west area. (See 
Telegram 1717.) 

The Chief of the Naval Liaison Staff, Finland reports that at his 
request the Finnish Commander in Chief, Navy promised to take ap- 
propriate steps for obtaining from Marshal Mannerheim the release 
of the small coastal mine-laying craft and Italian subchasers from- 
Lake Ladoga. 



V. Submarine Warfare 

1. Enemy Situation : 

Reconnaissance activity in the Bay of Biscay was very 
lively. One plane reported that it attacked and allegedly badly 
damaged a submerging submarine 250 miles southwest of Vigo. 

Reports of submarine attacks were intercepted from southwest of 
Santiago, southwest of the Mississippi estuary, off Curacao, and 
southeast of Bahia. An unknown steamer, the WEST FELMAR, was 
torpedoed west of Trinidad. 

2. Own Situation : 

No reports of importance were received from the North 
Atlantic. Submarine U "553" re-established contact with the oonvoy 
west of Windward Passage. The convoy was reported to consist of 
20 steamers, with 2 destroyers preceding and 2 corvettes following. 
The submarine sank 2 steamers from this convoy, totalling 11,000 
GRT, and torpedoed another steamer of 5,000 GRT. The operation 
is being continued. 

Submarine U "508" located a westbound convoy consisting of 20 ves- 
sels in the western entrance to the Florida Strait. During the 
attack the submarine heard 2 hits. 

Contact with the convoy west of the Azores was maintained until 
midnight. In the attack made during the day, submarine U "214" 
sank 4 steamers totalling 20,000 GRT from this convoy. A freight- 
carrying sailing vessel was sunk in the Mediterranean. In ad- 
dition to 2 submarines and planes, destroyer ZG "3" was also sent 
to escort submarine U "83" which is unable to submerge. For de- 
tails see Supplement to the Submarine Situation in War Diary, Part 
B, Vol. IV. 



-218- 



CONFIDENTIAL 
18 Aug. 1942 

VT. Aerial Warfare 

1. British Isles and Vicinity : 

Reconnaissance flights were carried out over the area 
off the British Isles during the day. At night small numbers of 
our planes attacked Norwich. On the night of 18 Aug. some 100 
enemy planes penetrated into the eastern part of the Reich ter- 
ritory. Bombs were dropped on Danzig. It is to be assumed that 
mines were dropped in the Baltic Sea entrances, the Kiel Bay, and 
in the German Bight. 

2. Mediterranean Theater ; 

Radio intelligence reports that the transport of fighter 
planes to Malta has been completed. Reconnaissance operations 
against the enemy forces, reported on 17 Aug., failed to yield any 
results. Otherwise there is nothing to report. 

3. Eastern Front : 

Reconnaissance flights were made over the Black Sea, the 
Caspian Sea, and the Arctic Ocean. 71 enemy planes were reported 
shot down 'on the eastern front of the Army. 

4. Special Items ; 

a. For information about mine-sweeping plane production 
and the planned distribution of the new planes see l/Skl I op 
20321/42 Gkdos. in War Diary, Part C, Vol. V. 

b. Mine-sweeping planes under the operational command 
of. Group North have been assigned as follows: 3 to the Commanding 
Admiral, Defenses, North; 3 to the Commanding Admiral, Defenses, 
Baltic Sea; 3 to the Naval Station, Baltio; 1 (later 3) to the 
Commanding Admiral, Norway. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation. Mediterranean : 

Upon completion of the transport of planes to Malta the 
aircraft carrier FURIOUS, 1 cruiser of the DIDO class, 10 destroyers, 
and 2 oorvettes re-entered Gibraltar from the east in the morning. 
The ILLUSTRIOUS entered dock on 18 Aug. The RODNEY and another air- 
craft carrier of the ILLUSTRIOUS class have not been observed in 
Gibraltar since 16 Aug. They are presumed to have departed in 
westerly direction. 

In the eastern Mediterranean, Italian air reconnaissance reported 
in the morning that a cruiser and a destroyer were proceeding on 
a southerly course 75 miles west of Haifa. 

2. Own Situation. Mediterranean : ,. 

In the night of 17 Aug. enemy planes made major attacks 
on Tobruk and Marsa Matruh. No damage was reported. Otherwise 
there was nothing to report. 

-219- 



18 Aug. 1942 



CONFIDENTIAL 



3. Transport of Supplies to North Africa ; 

The motor ship BIXIO has been brought into Navarino. She 
has 3,200 war prisoners on board. 

In the night of 17 Aug. enemy planes sank the motor ship PILO 
(6,836 GRT) en route to Tripoli 45 miles south of Pantelleria. 

Enemy reconnaissance planes located and repeatedly attacked the 
convoy of the GITTA DI ALESSANDRIA en route from Suda to Tobruk. 

In view of the heavy steamer losses sustained during the last few 
days, the scarce Italian naval and air escort forces available are 
at present being used for one convoy at a time. This will in- 
evitably lead to a serious delay in the transport of supplies. 

4. Area Naval Group South ; 
Aegean Sea : 



was sent to render aid to submarine 
in the Aegean Sea proceeded aocording 



Destroyer ZG "3" 
U "83". Convoy operations 
to plan wi-thout incident. 

Black Sea : 

Enemy Situation : 

Air reconnaissance reported 1 battleship, 2 heavy cruisers 
(l damaged), 5 destroyers (2 in dock), 11 steamers, 2 tankers, and 
25 small vessels in Poti . 1 heavy cruiser under cover, 1 destroyer, 
2 tankers, and 4 steamers were spotted in Batum. Observation was 
inoomplete. No warships were sighted in the Caspian Sea harbors 
or on the Volga River. The 4th Air Force assumes that the enemy 
troops are embarking in Tuapse at night. 

Own Situation : 

« 

Bad weather during the night of 16 Aug. dispersed the 
landing craft group proceeding from Constanta to the Crimea. 1 
barge returned to the port of departure; 3 barges entered Crimean 
ports. No report has as yet been received about the remaining 2 
vessels. 

The Italian submarines CB "2" and CB "6", which left Constanta on 
17 Aug., were likewise forced to return because of bad weather. 

The prevailing weather conditions prevented the feint landing on 
the southern coast of the Taman Peninsula scheduled to take place 
on the night of 17 Aug. as part of operation "Bluecher II". 

Convoy operations proceeded as planned, 

5. Special Items : 

a. The Army Quartermaster General reported to the 
Fuehrer on the question of employing steamers for the transport 
of supplies in the eastern part of the Black Sea. The Fuehrer 
agrees with the position of Group South that the steamers should 
not proceed beyond Feodosiya for the time being since, in hie 
opinion, steamer losses in the Black Sea must be avoided. 



-220- 



CONFIDENTIAL 
18 Aug. 1942 

The Naval Staff informed Group South, the Naval Liaison Officer 
to the Army High Command, and the Naval Liaison Officer to the 
Air Force Operations Staff to this effect via Telegram 1717. 

b. For suggestions made by Group South with reference 
to the installation of a new weather station in the Caspian Sea 
and a radio mast in Sevastopol see Telegrams 1730 and 1955. 

The Naval Staff Quartermaster Division will take care of the matter 



VIII. Situation East Asia 

No noteworthy reports have been received. 



IX. Arm v Situation 

1, Russian Front ; 

Army Group A ; 

The V and XLIV Army Corps of the Ruoff Army Gro.up are 
engaged in heavy fighting on the northern slopes of the Caucasus 
Mountains. The Rumanian 3rd Army succeeded in extending its ad- 
vance bridgeheads north of the Kuban River in westerly direction. 
Numerous enemy forces are still holding their positions in the 
industrial district of Maikop. Detachments of the XLIX Mountain 
Corps have reached the high-mountain ridge. The Klukhor Pass has 
been taken. 

The enemy is covering the retreat of his major forces toward the 
east and southeast in front of the 1st Panzer Army with strong rear 
guards and superior air power. The 23rd Panzer Division started 
the bridge construction west of Maisky and is again under heavy 
attack by enemy planes. The remaining forces of Army Group A are 
advancing as planned in southeasterly direction, encountering only 
slight enemy resistance in some places. 

Armv Group B : 

The 24th Panzer Division took over the protection of the 
4th Panzer Army flank west of the chain of lakes stretching south 
of Tsatsar. Enemy tank attacks against the Don bridgehead north- 
west of Stalingrad were unsuccessful. Southeast of Kremenskaya, 
enemy troops crossed the Don River and broke through our weak 
defenses. The 22nd Panzer Division is being sent into action. 
Enemy attempts to cross the river in the area of the 8th Italian 
Array were prevented. This was the first day in a long time that 
everything was quiet in the Voronezh area and south of Yelets. 

Central Army Group ; 

The operation in the Sukhinichi area came virtually to 
a standstill before the strongly fortified enemy position near 
Zhizdra. Enemy attacks east of Vyazma, south of the Vyazma -Moscow 

-221- 



CONFIDENTIAL 
18 Aug. 1942 

highway, east of Gzhatsk, and in the area east of Sychevka were 
repulsed. Heavy enemy attacks '-carried out with tank support north 
of Rzhev also failed. The enemy suffered considerable losses. 

Northern Army Group : 

Enemy attacks on the Demyansk front, southeast of Staraya 
Russa, south of the land bridge leading to the II Army Corps, and 
near Soltsy were repulsed. Our thrust southeast of Leningrad was 
stalled by artillery fire. 

2. Finnish Front : 



No incidents were reported. 

3. North Africa : 

No noteworthy reports have been received. 

******** ****** *********** 



_ooo_ 



CONFIDENTIAL 
19 Aug. 19)42 

Items .o f Politic al I mportance 

The conferences between Churchill and Stalin in Moscow are being 
followed closely in Gre.-t Britain and the neutral countries. 
Lacking any detailed information about the decisions made during 
these conferences, the newspapers are indulging in lively specu- 
lation, particularly on the subject of the second front, in view 
'of the presence in Moscow of military advisers. 

It is obvious that the Chungking Government was not represented 
at the Moscow conference, since care was taken to eliminate any 
discussion of Japan. 

Changes in command were made in North Africa immediately follow- 
ing Cnurchill's stay at Cairo. Auchinleck was replaced by 
General Alexander as Commander in Chief in the_ Middle East. Gen- 
eral Montgomery succeeded General Ritchie as Commanding General 
of the 8th Army. It remains to be seen what task will be assigne- 
to Auchinleck. He may have been released for some special task 
in connection with the Moscow decisions. (Caucasus Army? 1) 

Great Britain : 

Axis propaganda presents the landing of British and Canadian 
troops at Dieppe, which was carried out this morning, as an act 
of desperation prompted by the Moscow decisions, or rather by 
Stalin's demand. A British broadcast called on the French 
people .to abstain from any action that might jeopardize their 
safety. The day on which the French people will be asked to 
take action has not yet arrived. 

Discussions of the Anglo-American air offensive against Germany 
in the Sunday Times and the New York Times indicate that, in the 
opinion of the British, American bombers and their crews have so 
far failed to live up to the high hopes placed in them. For 
details see political Review No. I93 , Paragraph 2. 

India : 

Neutral as well as American press reports reveal that the Allies 
are continuing their efforts to bring about a compromise agree- 
ment between Great Britain and the Congress Party, "in order to 
ensure India's full cooperation for the Allied cause". For de- 
tails see Political Review No. 193> Paragraph 3. 

U.S.S.R. : 



A Polish diplomat in Moscow asserted that a separate peace be- 
tween Germany and Russia is out of the question. The Moscow 
conference merely served the purpose of' establishing whether 
Russia can hold out until winter. The Russians did not present 
an ultimatum to Britain. Although the Russian people feel dis- 
appointed by the British, there is no deep resentment- Otherwise, 
however, the Russians continue to be as reticent as usual and do 
not allow anybody insight into their real situation. Their main 
line of defense has been shifted to the Caucasus s but they are 
firmly determined to hold Stalingrad at all cost. 

Chile ; 

The visit of President RIos to the U.S.A. on Roosevelt's invitation 

-223- 



CONFIDENTIAL 



19 Aug. 19^2 



has been set for the autumn, chiefly in order to gain time 
in case the situation develops in favor of the Axis, 

Brazil: i % 

— — — — »» 

According to an official report, Axis submarines sank 5 Brazilian 
vessels plying between ^Brazilian harbors on 16 and 17 Aug. President 
Vargas denounced the** sinkings a# piracy and announced that Axis 
ships and the property of Axis citizens will be confiscated in 
retaliation. 

Japan : 

The Cabinet decision adopting a J>0% cut in government personnel 
amounts to a reduction in force of some 125,000 employees, 
20,000 of whom will be incorporated in the military administration 
In the conquered territories, 

Sweden : 

On 18 Aug. a Russian submarine sank the steamer LILJEVALCH (8,770 
GRT) in the Swedish territorial waters off Vaestervlk. The ship 
was proceeding in an escorted convoy. 

Spain : 

According to a Vichy 'Telegraphic Service (Ofi) report, an attempt 
was made on the life of War Minister Varela, allegedly killing 
200 persons. The Minister is unhurt. 

This incident throws a revealing light on the 
domestic situation in SpainI 



Conference on the Situation with the Chief, Naval Staff 

I. ' The Chief, Naval Staff Communications Division reports tnat 
our radio intelligence service has intercepted U.S. radio call 
names, possibly of submarines, in the Mediterranean. 

II. The Deputy Chief, Naval Staff Quar-termaster Division dis- 
cusses the demands for the defense of the west area against 
enemy landings, raised as a result of the Inspection tour of 
the Commander in Chief, Navy In France (see War Diary 8 Aug.). 
The Naval Staff Quartermaster Division has examined all the 
Issues pertaining to its authority, and has clarified the sit- 
uation to such an extent that the matter can be considered 
settled. A few unsettled questions (such as alleged lack of 
personnel for the i^th gun of the Briere battery and alleged 
shortage of ammunition at the Mirus battery are still under in- 
vestigation. 

III. On the basis of a report by the Chief of Staff, Naval Staff, 
the Commander in Chief, Navy has ordered that the special com- 
mand unit of the staff of the Commanding Admiral, Group South 

be dlssolved^since conditions which existed when it was established 
no longer prevail and the present stricter regulations do not 
permit leaving it with the Group. 

-224- 



CONFIDENTIAL 



19 Aug. 19i42 



IV. The Chief of Staff, Naval Staff reports on the German Admiral, 
Tokyo. It Is self-evident that the posts of the German Admiral 

and that of the Naval Attache, Tokyo must be occupied by two differ- 
ent persons if the emancipation from the communication channels of 
the Foreign Office, which the Navy intends to achieve by the crea- 
tion of this new office and which the Armed Forces High Command 
also desires for the Armed Forces as a whole, is to become a fact. 
Such independence from the Foreign Office communication channels 
has become absolutely -necessary in the- interest of a real coopera- 
tion between the German and the Japanese Armed Forces representa- 
tives. The appointment of a Naval Attache presents great diffic- 
ulties, especially since the Admiral, Tokyo is asking for a special 
staff officer. Despite certain objections, a temporary solution 
is contemplated whereby the Assistant to the Attache, Lt. Commander 
Trendtel, would be assigned to the post of Attache. 

V. The Chief, Foreign Affairs Section, Naval Staff Operations 
Division gives a survey of the current negotiations of the German 
Armistice Commission, France about powder and ammunition agree- 
ments, problems of "ship tonnage, and reinforcement of the West 
African defenses. For details see War Diary, Part C, Vol. VIII. 

VI. The Japanese Naval Attache has asked the German Naval Attache 
Section by telephone to furnish approximately 6,000 construction 
drawings for motor mine sweepers, to be taken along by submarine 

I "30". The Naval Attache Section has been directed to answer 
the Japanese Naval Attache that the Navy High Command agrees that 
the drawings be handed over and that the Japanese copy the' motor 
mine sweepers; in both these questions, however, they must approach 
the shipbuilding firm (Luehrssen) directly. Furthermore, there is 
not sufficient time for delivering the drawings to submarine I "30" . 

In a Very Restricted Circle ; 

VII. a. The Chief, Operations Branch, Naval Staff Operations 
Division discusses the reports of the Naval Liaison Officer to the 
Commander in Chief, Air Force of 15 and 18 Aug. The Commander 

in Chief, Air Force has issued orders to make every effort to 
shoot down any planes flying the route between England and. Sweden. 
The situation at Rzhev has necessitated the transfer of 2 bomber 
groups from the west and 1 fighter group from the 1st Air Force 
to the Air Force Command, East. It is of particular importance 
that Rzhev remain in our hands because all the winter supplies 
of the 9 ttl Army are stored there. It has been reported to the 
Fuehrer that our air raids on England can no longer be expected 
to have any serious effect. 

According to a report of the 3rd Air Force, forces of the Air 
Command, Atlantic Coast shot down 5 Whitleys, 2 Wellingtons 
(1 not definitely established), and 1 Catalina over the Bay of 
Biscay between 1 Jul. and 13 Aug.) 

Only 5 British aerial mines were swept by minesweeping planes off 
Lorient during the last I4. weeks. 

b. For a further report on the situation in connection 
with operation "Wunderland" see War Diary, 17 and 18 Aug. 

c. Group North has submitted a report from submarine U "l+O^" 
in reply to the Group's inquiry concerning the message about 

-225- 



CONFIDENTIAL 



19 Aug. 1942 



sighting convoy PQ 18. The submarine report reads as follows: 

"The officer of the watch on U "405" sighted 2 shadows -at a fine 
angle on the bow and an escorting vessel at an angle of 0° to 10° 
at 290° on the direction indicator. The watch on the bridge, who 
is considered particularly reliable, reported 7 to 9 small and 
large steamers at 0° on the direction indicator. The ships were 
proceeding approximately on a 30° course* Speed was not estab- 
lished." 

Remark by Group North: With the visibility not exceeding 600 
meters, the information is so vague that their correctness is to 
be doubted. It is concluded therefore that convoy PQ 18 was not 
intercepted. 

The Naval Staff will come back to the matter. 

VIII. The Deputy Chief, Naval Staff Quartermaster Division re- 
quests permission to issue orders to Admiral Marschall to pre- 
pare for combining the commands of Group. V/est and the Commanding 
Admiral, Prance. 

The Commander in Chief, Navy wishes the orders to be postponed 
until Admiral Saalwaechter has gone on leave. 



Situation 19 Aug. 19 42 

I. War in Foreign Waters 

1. Enemy Situation ; 

No reports have been received. 

2. Own Situation ; 

Via Radiogram 0941 the TANNENFELS was directed to proceed 
to her rendezvous with ship "10 M on 28 Avg. and to continue her 
voyage after supplying the ship. 

The Naval Staff sent to the Naval Attache, Tokyo congratulations 
for the D0GGERBANK on the occasion of the completion of her long 
and successful war mission. (See Telegram 1950.) 

Information on the enemy situation was sent out via Radiogram 2147. 

Group West and the Naval Office Boulogne received sailing orders 
1/Skl I k 1620/42 Gkdos . Chefs, for the blockade-runner KARIN. The 
mission of the vessel is to take cargo to Japan. The date of de- 
parture will be set by Group West. The Naval Staff will take over 
the command at 30° W. For copy no. 4 of the sailing orders see 
War Diary, Part C, Vol. I. 



-226- 



CONFIDENTIAL 
19 Aug. 19)42 

II. Situation west Area 

1, Enemy Situation ; 

lor the probable location of British naval forces accord- 
ing to radio decoding and intercept see l/Skl 2B595/I12 geh. in Vu'ar 
Diary, Part C, Vol. II b. 

According to statements by French fishermen, British planes and a 
rranibfer of British submarines were sighted in the area betvjeen I4.5 
30' N, J4.7 N, 6° 30 ' W, and 9° 30" W daily in July. Tuna fisher- 
men, who returned from their fishing expedition on 11 and 12 Aug. 
ahead of schedule, sighted many mines adrift at I4.6 to l\. r J° N, 
6° 10' W. In many instances the British planes strafed the French 
fishermen. 

During the day air reconnaissance observed lively ship traffic in 
the area between the Isle of Wight and Dungeness, 'and between Dieppe 
and Fecamp. In the morning a convoy consisting of i| steamers, 
2 destroyers, and 1 patrol vessel was proceeding on a westerly course 
south of Start Point, while 9 steamers, I4. destroyers, and 2 patrol 
vessels were en route on a I3O course south of Land's End. 

For radio intelligence data in connection with the landing operation 
at Dieppe see File "Enemy Landing Operation at Dieppe on 19 Aug. I9I4.2". 

2. Own Situation : , 

Atlantic Coast : 

The Naval Special Service Department, Bordeaux has submitted 
the new schedule for completion of shipyard work on the blockade- 
runners which are to depart in September. The resulting changes 
in the previous departure plans are being communicated to Group 
V.'est. Whether all 8 ships will be able to depart in September 
will depend on the weather and on the enemy situation. All of 
them do not necessarily have to leave. An attempt should be made 
to bring out the PASSAT, the PIETRO 0RSE0L0, the SPICHERN, and the 
BURGENLAND. For copy of the corresponding directive to Group West 
see l/Skl I k I617A2 Gklos. Chefs, in War Diary, Part C, Vol. I. 
Weather conditions appear rather unfavorable for bringing out the 
WESERLAND and the UCKERMAKK. Good visibility was predicted for 
the area west and north of Cape Ortegal in the afternoon. Group 
West transmitted the forecast to the WESERLAND via Radiogram 1337» 
As directed, the blockade-runner made another attempt to break 
out in the evening of 18 Aug., but at I7I7 sne reported that she 
was attacked by enemy planes at l\l+ 18' N, 8° IJ4. f W and shot down 
1 Liberator, and that she headed for Ferrol after l6i|0. Thereupon 
Group West directed the ship via Radiogram 1939 not to enter Ferrol 
but to make another breakthrough attempt at nightfall. Shortly 
thereafter, at 1901, the UCKERMARK likewise reported an enemy 
attack by wheeled planes and the presence of shadowers beginning 
1600 while she was proceeding on a southerly course in quadrant 
BF 76. Group West directed the ship to attempt another break- 
through at 21 knots in westerly direction, starting out from 
the northeastern coast of Spain at I4.3 30' N at nightfall. At 1910 
the WESERLAND reported from 1+3° I4.3 * N, 0° 13 ' W that she had warded 
off another Liberator attack and that the weather was clear and 
visibility good. On the basis of the weather forecast for 20 Aug., 
Group West expects reduced and changing visibility in the area 



-227- 



CONFIDENTIAL 



19 Aug. I9I4.2 



through which the WESERLAND is to pass. Group West notified 
both blockade-runners about the weather forecast and about the 
osition of the northbound enemy convoy which was located at 
2° J+0' N, 17° 30' W on 19 Aug. at noon, adding that the ships 
might eventually overtake or encounter one another. (See Tele- 
gram 2200.) 



I 



r 



At 22J46 the UCKERMARK reported another attack, this time by sea- 
planes, and at 23OO she reported that she was being constantly 
attacked and shadowed, and that she shot down 1 plane and 'was 
returning along i^ N at a speed of 21 knots. At the same time 
she asked for fighter protection. The 3rd Torpedo Boat Flotilla 
is being dispatched to bring her in. Thus, the UCKERMAI.K has for 
the second time failed to break through. It is also questionable 
whether the WESERLAND can get away. The only course left is to 
wait for more favorable visibility conditions during the new- 
moon phase in September and for the effect of operations by our 
planes in the Bay of Biscay area after the arrival of reinforce- 
ments. 

Channel Coast ; 

In the night of 18 Aug. the 5th PT Boat Flotilla 
carried out its mine operations in quadrants BF 2382 and 2381 
according to plan. The pursuing enemy motor gunboats passed 
the flotilla, which had stopped, without an encounter. For 
brief report see Telegram 1100. The 5th PT Boat Flotilla is 1 
scheduled to transfer from Guernsey to Cherbourg in the night 
of 19 Aug. In the same night 13 boats of the 2nd and l+th PT 
Boat Flotillas are to be sent into action off the southeast 
coast of England. 

Enemy Landing at Dieppe ; 

(1) At 0I4.28 our convoy consisting of subchasers "1I4.0I4." and "lJ4.ll", 
mine sweeper M "I4.OI5", and 5 motor ships encountered superior 

enemy naval forces which consisted of flotilla leaders, several motor 

gunboats, and numerous gunboats. The convoy was dispersed in the 

course of the engagement; subchaser "II1OJ4." was driven off and was 

in flames when last sighted 10 miles north of Dieppe at 0603« Other 

reports stated that she blew up. Subchaser "ll4.ll" and mine sweeper £ 

M "I4.OII4." fought separate engagements during which subchaser "ll4.ll" 

fired on and rammed a large assault boat carrying 20 to 30 men, 

destroying it. Hits were scored on several motor gunboats and a 

flotilla leader. 1 large gunboat was sighted burning, and 1 motor 

gunboat was seen drifting bottom up. During the engagement numerous 

enemy planes strafed our vessels. 2 bombers and 1 fighter were 

definitely shot down, and 1 fighter was probably shot down. The 

convoy was brought into the roadstead of Le Treport where it can 

be protected from the shore. 

(2) This engagement alerted the coast seotor from Boulogne up to 
Cherbourg against the enemy landing whioh started on the ooast 
near Dieppe at 0600. One landing party consisting of about 3 
regiments with 30 tanks debarked from 300 to I4.OO landing barges 
during the morning and suooeeded in establishing footholds on the 
beaohes of Dieppe, Belleville, and St. Valery. 13 to 15 light 
naval vessels and several fighter groups supported the landing 
operations. The fire opened by the alerted Army defense foroes 
lnflioted heavy casualties on the enemy landing troops whioh were 

_OOQ_ 
— l^t.0 — 



CONFIDENTIAL 
19 Aug. 1942 

thus unable to send their tanks Into .action and to seize or 
hold their objectives, i.e., batteries, anti-aircraft equipment, 
and, most important of all, the harbor of Dieppe, We were able 
to hold the 15 cm. Army battery no. 030 at Pourville in hand to 
hand fighting even after the guns had been blown up. 

(3) During the early afternoon hours the enemy forces began to 
re-embark. Even while the 'embarkation v/as in progress, the artillery 
of our 302nd Division succeeded in opening effective fire on 3 
destroyers, 2 torpedo boats, and several landing barges, v/hich 
probably sank. In the evening the Commander in Chief, West was 

able to report that there was not a single armed British soldier 
left on the mainland, and that while our losses were moderate, we 
took 1,500 prisoners, including 60 Canadian officers, and de- 
stroyed 26 tanks. The harbor of Dieppe is undamaged and the harbor 
barrage intact. . A fighter -bomber sank 1 destroyer of the HU1IT 
class off the entrance to the harbor. The Air Force radar sta- 
tion near Berneval, for which a stiff battle was fought, is in 
usable condition. The landing was repulsed by the regular forces 
assigned to the respective division sectors, without resorting to 
the SS troops and the 10th Panzer Division which had been brought 
up as reinforcements. 

(4) Available reports as well as prisoner statements, confirm that 
it v/as planned to land 3 regiments. Behind this advance party 
there were 26 transports which were also spotted by our Air Force. 

A simultaneous landing, expected to be made at some other point 
in the west area, did not materialize, A clear picture of the en- 
emy's actual intentions cannot be formed as yet. The forces em- 
ployed in the operation appear too large for a mere raid, especially 
since more transports were standing by in the rear. It is pos- 
sible that the Dieppe harbor v/as their first objective and 
that parts of the second wave were to be landed there with the 
purpose of establishing a real invasion bridgehead, Hov/ever, there 
is no definite proof. 

• 

(5) So far, the Naval Staff has not received any reports about ■ 
participation of naval forces in the defensive combat on the 
coast. The Armed Forces High Command Operations Staff assumes 
that British troops also landed on the outer edge of the Dieppe 
jetty. Our planes have been sent into action against the main 
force of 26 transports which is withdrawing in westerly direction. 
No results have as yet been reported. 

(6) Between 1400 and 1530 a lively exchange of enemy radio mes- 
sages was observed by our radio intelligence, indicating that 
the situation of the enemy v/as difficult at that time, A report 
about the sinking of a destroyer of the HUNT class by artillery 
fire was intercepted at 1450. 

(7) The first news concerning the details of the operation did 
not start coming in at the Naval Staff until noon, and all re- 
ports came from other branches of the Armed Forces. Only 
after 2000 in the evening did Group West transmit details of 
vital interest for the Navy. Thus the real importance of the 
engagement betv/een our convoy and the enemy landing force as 
the initial phase and a warning signal very unfortunately failed 
to receive full recognition on that day. For the same reason, no 
mention of the importance of this engagement is to be found in 
the special communique from the Fuehrer Headquarters announcing 

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CONFIDENTIAL 
19 Aug. 19U2 

the success of the German coast defense and the crushing defeat of 
the attacker with explicit reference to the political pressure 
by Stalin which had forced the British to commit this act of 
desperation. 

For messages and reports received see File "Enemy Landing at 
Dieppe on 19 Aug. I9I4.2" and appendix to War Diary, Part C, 
Vol. II b. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 

Ene my Sit ua tl on ; 

A few planes were observed flying in the direction of 
the Skagerrak. Toward noon air reconnaissance spotted a south- 
bound convoy off Lowestoft and a convoy proceeding on an un- 
specified course off Cromer. Each of the convoys consisted of 
15 to 16 steamers. At 0^h5 motor gunboats were sighted in the 
vicinity of the Den Helder approach buoy. 

Own Situation ; 

On the night of 18 Aug. about 25 enemy incursions were 
observed on a wide front to the east and northeast over the 
German Bight and Jutland as far as the northern tip of Langeland 
Island. It is assumed that the planes dropped mines. Increased 
readiness was ordered on the Danish west coast since enemy 
ships were located by the radar set (Lamageraet) at Thyboroen. 
For details see Telegrams 0650 and O7I4.6. In the afternoon 
single enemy planes carried out reconnaissance flights over the 
northwestern coast of Germany as far as the area of Hanover. 

Up to 2000, 5 ground mines had been swept off Terschelling, 3 
off Borkum, and 1 ground mine was swept off the Ijmuiden jetty. 
1 of the 5 mines off Borkum was swept by a mine-sweeping plane. 

Convoy and patrol operations in the area of the Commanding 
Admiral, Defenses, North proceeded according to plan without 
incidents • 

Pointing to the enemy landing at Dieppe, Group North directed 
the Admiral, Netherlands and the Commanding Admiral, Defenses, 
i^orth to order the highest degree of readiness on the coast 
and at sea and to limit the convoy movements to a minimum until 
further notice. (See Telegram 1201.) 

2. Norway, Arctic Ocean : 

Enemy Situation : 

For details of photographic reconnaissance carried 
out over the area of Iceland on 18 Aug. see Telegram 1231. 

Reconnaissance flights carried out by the 5th Air Force over the 
Spitsbergen area on 19 Aug. failed to yield any results of tactical 

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CONFIDENTIAL 



19 Aug. 19i+2 



significance. On the west coast, the sea was found free of ice 
as far as the Bell Sound, while 5 to 10$ drift ice was observed in 
the area between the Eell Sound and the Ice Fjord. A total of 11 
patrol vessels were located off the north coast of Iceland. In 
the afternoon 10 to 15 large vessels were in Reykjavik. 

Own Sltuatj on ; 

No incidents occurred in the area of the Commanding 
Admiral, Norway. 

For additional remarks on the report of submarln3 U "I4.O5" about 
sighting convoy PQ 18 see Conference on the Situation with the 
Chief, Naval Staff. 

The Commander in Chief, Air Force reports that the weather expedition 
"Knospe" cannot be brought In before the beginning of September 
since the only plane which can be used for this purpose, a BV 222, 
is being overhauled. 

The 9th Submarine Flotilla reported that submarine U "595" sighted 
drifting mines in quadrants AE 8335, 8337, and 8539 between ZJ and 
29 Jul. Group North has informed all submarines in that area. 

Submarine U n [|.35", was ordered to patrol the approach to the Ice 
Fjord where steamers are occasionally sighted by our planes. 

In connection with operation "Sunderland" , submarine U "601" 
was ordered to withdraw to the area between Dickson Island and 
White Island after her rendezvous with the SCHEER. Submarine 
U , '255 n is to patrol the passage between Cape Zhelaniya and the 
ice boundary and to maintain contact with worth-while targets 
for subsequent operations by the cruiser SCHEER. Submarine 
U "251 M has been ordered to wait for the SCHEER at 770 30 ' N, 
73° E beginning 20 Aug. from 1600 to 2I4.OO and to proceed im- 
mediately thereafter to the area west of the Kara Strait, if 
ice conditions permit. 

\\. enemy patrol vessels opened fire on submarine U "209" in the 
northern approach to the Korgtin Strait. The submarine withdrew 
farther out to sea for the planned transfer of ammunition. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1* Enemy Situation ; 

No reports of importance have been received. 

2. Own Situation ; 

In the night of 18 Aug. enemy planes were active over 
the entrances and the western part of the Baltic Sea. It is assumed 
that they dropped mines. In the eastern Baltic, some 30 enemy 
planes were reported over the Memel-TIlslt-Insterburg-Goldap area. 
The planes penetrated as far as Rixhoeft, Gdynia, and Danzig, 
dropping bombs. For damage and casualties see Telegrams O7IO and 
1157* I n the afternoon single enemy planes carried out reconnaissance 
missions over the area of Schleswig-Kolstein and Kiel. Smoke 
screens have been ordered for Kiel. (See Telegram 2006.) 

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CONFIDENTIAL 
19 Aug. 19U2 



Convoy and patrol-, operations in the area of the Commanding Admiral, 
Defenses, Baltic Sea proceeded without incidents. 

In the early morning hours 16 Russian bombers attacked a subchaser 
group off Vigrund in the Gulf of I- inland. Mine sweeper M "30" 
suffered casualties. In the evening of 18 Aug. Finnish fighters 
shot down 16 more Russian fighters. The air battle was fought 
over an area extending as far as Shepel. * 

Due to unfavorable weather conditions, operation "Seehund II" 
was postponed. Convoy and mine -sweeping operations were carried 
out according to plan. 



V. Submarine Warfare 

1. Enemy Situation ; 

Lively air activity was reported over the southern rendez- 
vous area. Submarine sighting reports from planes in connection 
with our operation against^ the convoy east of the Azores were 
intercepted on several occasions. 

Other submarine sighting reports were intercepted from the area 
east of New York, the Florida Strait, and from the areas south 
of Cuba and west 'of Trinidad. Submarine attacks were reported 
from the area east of Curacao and 250 miles north of the Anegada 
channel (Lesser Antilles). 

According to an intelligence report from London of 11 Aug. a 
convoy of 1I4. steamers is being loaded with tanks and anti-tank 
guns on the Isle of Man. 

2. Own Situation : 

I), submarines have left their bases. For operations in 
the Arctic Ocean see Situation Arctic Ocean. 

From the northbound convoy intercepted west of Trinidad, submarine 
U "162" sank a 6,000 GRT steamer, while submarine U "564" (Lt. 
Suhren) sank 2 tankers and 2 large steamers, totalling 28,000 GRT, 
despite strong defense action by destroyers- and planes. 

The convoy proceeding west of V^indward Passage has not been 
intercepted again. Submarine U "553" reports that the 5,000 GRT 
steamer from this convoy, which was torpedoed on 18 Aug., has 
probably sunk. 

Submarine U "5IO" sank the steamer NORTHUMBERLAND (probably 
1,255 G R T) in the area off French Guiana. 

A strong air escort sent into action badly hampered our operation 
against the northbound convoy east of the Azores which has reached 
the latitude of Cape Vllano. Only submarine U "l4.06 M was still 
able to sink a 6,000 GRT steamer from this convoy. The convoy was 
reported to consist of 15 to 20 steamers. Several of our submarines 
were damaged by depth charges and bombs. The Commanding Admiral, 
Submarines ordered the operation discontinued. 

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CONFIDENTIAL , 

19 Aug. 19U2 

In the Mediterranean, the rescue mission for submarine U "85" 
has been completed. 

For details from all operations areas see Supplement to the 
Submarine Situation in War Diary, Part B, Vol. IV. 

3. Special Items : 

Concerning the effect of enemy planes on our submarine 
operations, the Commanding Admiral, Submarines submitted the 
following report to the Naval Staff, with copies to Group West, 
the 3rd Air Force, and the Air Commander, Atlantic Coast: 

The plane escort of the enemy convoy located by our submarines 
110 miles east of the Azores on 16 Aug. and pursued northward was 
observed as early as l8 Aug. 420 miles west of Finisterre. By 
that time our submarines had already sunk 6 vessels totalling 
31,700 GRT, without loss or damage to themselve-s. 

Enemy air attacks on 16 Aug. ( sic ) resulted in our. loss of 
contact with the convoy and in heavy bomb damage to one of the 
submarines, which must presumably withdraw entirely from the 
operation. On the whole, the presence of even a few enemy 
planes makes operations against the convoy very difficult. This 
difficulty, however, could be overcome if He 177 ' s were sent 
up to chase the enemy planes away. 

These planes would; 

a. Eliminate the aforementioned difficulty for our sub- 
marines. 

b# Help to reestablish contact with the convoy. 

c. Offer chances for successful attacks on vessels proceed- 
ing without escort which have dropped out of the convoy due to 
submarine action. 

The Naval Staff will take up the matter with the 
Air Force Operations Staff. 



VI. Aerial Warfare 

l a British Isles and Vicinity : 

In the course of our defense action against the enemy 
landing at Dieppe 9^ enemy planes were shot down definitely and 
30 probably. The Naval Staff has not yet received any report 
about combat operations against the enemy ships. 

In the night of 19 Aug. 25 German planes attacked Portsmouth and 
10 attacked alternate targets. 

No enemy planes flew over the Reich territory in that night. 

2. Mediterranean Theater ; 

No noteworthy reports have been received. 

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CONFIDENTIAL 
19 Aug. lQj+2 

3. Eastern Eront ; 

Reoonnaissance planes were active over the Black Sea 
and the Sea of Azov. Around O9OO, 1 ; Russian submarine was sunk 
northwest of Hogland in the Gulf of Finland. 

For reconnaissance results from the Arctic Ocean see Enemy 
Situation, Arctic Ocean. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

The British Admiralty announced that the anti-aircraft 
cruiser CAIRO and the destroyer FORESIGHT were lost during the re- 
cent attack on the convoy in the western and central Mediterranean 
and that these ships, together with the EAGLE and the MANCHESTER, 
are the large war vessel^ lost in 'the course of this action. 66 
Axis planes were shot down, as compared with 8 British planes. 

The destroyer WRESTLER, which the Admiralty previouslj 
announced as sunk, evidently does not count as a large 
vessel. 

In reply to an inquiry by the Naval Staff (see War Diary 17 Aug.), 
the German Naval Command, Italy reports that, according to 
available information, only 2 battleships of the NELSON class 
definitely participated in the recent convoy operation. One of 
these battleships is still in Gibraltar in a damaged condition, 
while the other is assumed to have departed westward on 16 Aug. 

On the morning of 19 Aug. the cruiser CHARYBDIS remained at sea 
ease of Gibraltar for a few hours. The NELSON, the ARGUS, the 
FURIOUS, 1 ship of the ILLUSTRIOUS class in dock, and 3 cruisers, 
one of them of the FIJI class also in dock, were located in the 
Gibraltar harbor. Observation was incomplete. An agent reports 
that the foredeck of the NELSON is damaged. One of the FTJI-class 
cruisers is said to be the NIGERIA and to have been hit by 
a torpedo. 

In the morning Italian reconnaissance planes sighted 3 westbound 
British destroyers between La Galite and Cape de Fer, presumably 
en route from Malta. 

I4. steamers, 2 tankers, 3 submarines, and 2 patrol vessels were 
located in the harbor of Valletta. 

Submarines were sighted off Sfax, east of Derna, and north of 
Leukas Island. 

2. Own Situation, Mediterranean : 
No incidents were reported. 

3. Transport of Supplies to North Africa ; 

On 18 Aug. an enemy submarine sank the Italian steamer 



-234- 



• CONFIDENTIAL 
19 Aug. 1942 

PERSEO (4,857 GRT ) off Gape Carbonara (Sardinia). The arrival of the 
CITTA DE ALESSANDRIA convoy which was attacked by enemy planes en 
route from' Suda to Tobruk on 18 Aug. has not been reported. 4 German 
landing craft are en route from Palermo to Tripoli. 

826 tons were unloaded in Tobruk on 17 Aug. and 930 tons on 18 Aug. 

4. Area Naval Group South : 
Aegean Sea : 

No noteworthy incidents occurred. 

Black Sea : 

Enemy Situation : 

Air reconnaissance reported that 2 steamers, 1 tanker, 1 war- 
ship hull, and the cruiser KOMINTERN departed from Tuapse in the morning, 
evidently in the course of the evacuation of this base. 

Lively tug and barge traffic was observed on the Volga River. No notice^ 
able changes occurred in the number of ships in Astrakhan. 

Own Situation ; 

The Admiral, Black Sea ordered the Commander of the ( Danube 
Flotilla to come immediately to Ivanbaba in order to carry out mine- 
sweeping operations in the Sea of Azov, the Kerch Strait, and off the 
Caucasus coast. The harbor of Akhtari is badly damaged. The mine 
situation is unknown. However, according to a report of the Naval Harbor 
Control Office, facilities for transshipment and transport of supplies 
are available. 

5. Special Items : 

a. According to a Russian source, a canal 90 to 110 cm. 
deep connects the northern Kuban River mouth with Taman Bay since 1941. 

b. The Naval Liaison Officer to the Army High Command 
transmitted to the Naval Staff and to Group South the following report 
of Army Group A to the Army High Command dated 17 Aug.: 

"The Army Group has always strictly and carefully directed every de- 
tail of the various operations involving the naval landing barges. 

"All in all, the Army Group had 19 landing barges at its disposal, as 
well as 2 heavy ferry battalions. One of these battalions and 3 land- 
ing barges are employed to carry supplies. One of the landing barges 
sank upon striking a mine, leaving a total of 18 landing barges 
available. 

"5 Rumanian divisions and a strong anti-aircraft artillery force are 
to be brought up to the mainland from Kerch. Since the aviation 
gasoline required for operating the Siebel ferries of the heavy 
ferry battalion cannot be made available to the Army High Command, 
the ferries can be used only to a very limited extent. If the 
landing barges are now also going to be withdrawn from Kerch, as 
suggested by the Army High Command, any regular and continuous 
transport of personnel across the sea will become impracticable, 
since no other ships are available for this purpose. Even now it 

-235- 



CONIIDENTIAL 



19 Aug, 191+2 



take's at least 2 weeks to bring over a single division. 

"Nevertheless, as soon as a certain number of troops has been 
brought over from Kerch to the Tainan Peninsula, the Army Group 
will investigate the possibilities of reducing the number of' 
landing craft operating there and using the remaining ones for the 
transport of supplies. On the other hand, the Army Group feels com- 
pelled to point out that since the 298th Division has been likewise 
withdrawn it has become imperative to assign to its area the Ruman- 
ian forces, which are to be brought over from Kerch. They are 
also particularly needed for defense tasks in the large occupied 
area, since the few German divisions that are left are urgently 
needed at the front." 



VIII. Situation East Asia 

No noteworthy reports have been received. 



IX. Army Situation 

1. Russian Front : 

Army Gx-oup A ; 

On the Caucasus front sectors, our attacking forces, 
occasionally encountering stubborn resistance, are gaining ground 
in southerly and southeasterly directions according to plan. The 
13th Panzer Division took Vorontsovo east of Maisky and is ad- 
vancing toward the east. The 111th Division crossed the Kuma 
River near Praskoveya and Vladimirovka ( 150 km. from the Caspian 
Sea) . 

Army Group B ; 

The bridgehead on the Don River northwest of Stalingrad 
was widened and the military bridge completed. Enemy attempts 
to cross the river in front of the 8th Italian Army were warded 
off. 

Central and Northern Army Groups : 

Stiff, fighting continues in the area west of Byelev and 
in front of the Zhizdra positions, as well as in the penetration 
point southeast of Rzhev. On the northern front of Rzhev and 
near Lyubnitsa on the Demyansk front the enemy succeeded in 
penetrating our lines. Our troops, however, were able to seal 
them off. Enemy attacks near Staraya Russa and on the Pola 
and the Redvya Rivers were repulsed. Enemy assembly positions 
near Soltsy were smashed, and the enemy attack southeast of 
Leningrad in the sector of the SS Police Division was brought 
to a halt. 

2. Finnish and North African Fronts ; 
Nothing to report. 

-236- 



CONFIDENTIAL 
19 Aug. 1914.2 

" 3* France ; 

At 0605 the enemy began to land troops iu the sector 
near Dieppe. At 1000, debarkations -were still going on at Dieppe 
and Pourville. The situation was unclear at ^uiberville. Another 
landing was expected at Salnt-Aubin. Late in the afternoon the 
landing was successfully repulsed at every point (see Situation 
West Area). 



• 



-237- 



CONFIDENTIAL 
20 Aug. 1942 

Items of Political Importance 

The enemy landing at Dieppe is being widely discussed. Even while 
the operation was still in progress, the British were sending sit- 
uation reports to the French people by radio as well as by leaflets; 
they warned the French population against any participation in the 
battle since the present operation was of a merely temporary na- 
ture. After the conclusion of the operation the contention that the 
undertaking was not an invasion attempt but an action of limited 
scope was emphasized in 'a special communique of the British radio, 
which stated that the main combat force re-embarked almost to the 
minute according to schedule. The loss of 92 planes was admitted. 

• Information obtained in the meantime by the Army 
seems to confirm the fact that the undertaking was 
meant to be of limited scope. -• 

Be that as it may, the fact that the landing was beaten off will un- 
doubtedly have serious political consequences which will prove harm- 
ful to the enemy. Even if the undertaking was actually intended as 
a nuisance action of limited military scope, from the political 
point of view it was unwise, to say the least, because it was bound 
to end in heavy losses, without on the other hand producing any 
visible success. Not even the most skillful propaganda will be 
able to convince anybody that it paid to undertake such an opera- 
tion just to destroy the harbor of Dieppe and a few batteries and 
radar sets in its vicinity, or that the heavy casualties were not 
too high a price to pay for the experience gained. Since the 
constant discussion about establishing the second front in Europe 
had been going on for weeks, it is impossible to separate the 
Dieppe incident from this issue and avert the political fiasco, 
which is much more serious when connected with a military failure. 
It was therefore to be expected that the country most interested in 
an invasion, namely Russia, would receive the news about Dieppe 
with extreme coolness. 

A noteworthy article about the results of the Moscow conference 
appeared in the Neue Zuericher Zeltung . It calls attention to the 
fact that no mention was made of Japan during the negotiations, and 
that the emphasis was on the military aspects of the discussion. 
On the other hand, the words "second front" do not appear in the 
official communique on the conference. For details see Political 
Review No. 194, paragraph 1. 

Syria ; 

According to a diplomatic source, disagreement has arisen between 
De Gaulle and Catroux because of the latter' s refusal to send 
troops to Egypt. 

Italy ; 

The Tribuna voices once again the Italian claims to Tunisia, Cor- 
sica, and Malta, mentioning the Italian victory at Pantelleria. It 
states, however, that it is not enough to exclude foreign powers 
from the Mediterranean proper, for as long as its entrances are in 
foreign hands, the Mediterranean Sea will remain a prison. 

-238- 



CONFIDENTIAL 
20 Aug. 1942 

Portugal : 

In connection with the negotiations - in South Africa, conducted 
by the Colonial Minister, it is reported that Prime Minister* Smuts 
insists that Mozambique Is too weak to prevent the Japanese from 
establishing bases there. He believes that the situation calls 
for cooperation on the part of South Africa and Portugal. 



Conference .on the Situation with the Chief, Naval Staff 

I. Following the experience with the attempts of the WESERLAND 
and the UCKERMARK to leave port, as reported in detail by the 
Chief, Operations Branch, Naval Staff Operations Division, the 
llaval Staff ha - s arrived at the conclusion that the threat of air 
attacks, the weather conditions, and the present moon-phase make 
a breakthrough at this time too hazardous for these valuable 
ships. The Chief, Naval Staff agrees that Group West should be 
directed to order another breakthrough as soon as the enemy sit- 
uation and weather condition^ appear favorable. This will pre- 
sumably .not be the case before early September. It is more im- 
portant to save the ships for blockade-runner missions than to 
adhere to the schedule at the cost of sure losses. 

A directive to this effect has been issued to Group Vest. 

II. Report by the Chief, Naval Ordnance Division : 

1. Oil Situation in Russia; According to statistics, pro- 
duction In 1940-1941 amounted to 25,000,000 tons in Baku, 2,500,000 
tons in Maikop, 2,500,000 in Grozny, and 4,000,000 tons in the rest 
of Russia, excluding Sakhalin Island. The Maikop oil is particu- 
larly rich in gasoline. Many of the drilling plants in the Maikop 
area are destroyed. 2 brigades have been assigned to drill. To 
explore and put into operation the entire Caucasian oil district 
would cost 10 to 20 billion marks. 

2. Protection of the Nile dams by Egyptian troops. 

3. New regulations issued by the Minister for Armaments and 
War Production, concerning the following: 



ship. 



a. Inventions made in factories under private owner- 

b. Employment of transport specialists. 

c. The duties of the Armament Office (Ruestungskontor ) 



4. The effect on naval batteries of the Fuehrer directive 
for reinforcing coastal defenses against air attacks. 

The Chief, Naval Staff will ask the Fuehrer whether the SEYDLITZ 
turrets may be set up in France so that the GNEISENAU turrets can 
be left in Norway as planned. 

III. Report by the Chief, Naval Staff Quartermaster Division : 

1. The enemy landing at Dieppe is viewed very calmly at the 

-239- 



CONFIDENTIAL 
20 Aug. 1942 

Fuehrer Headquartei The ier in Chief, West and the Air 
Force Operations Staff transmitted the news promptly and in great 
detail. Unfortunately, contributions from the Navy were lacking. 

2. While on a short visit in Mariupol, the Chief, Naval 
Staff Quartermaster Division found 6,000 tons of armor in the 
Ilich plant, which is suitable for strengthening the coastal de- 
fenses in the west area and in Norway. The matter has been re- 
ported to the Fuehrer. 

From the afternoon of 20 Aug. till the morning of 23 Aug. the 
Chief, Naval Staff will be away from Berlin on an official trip 
to Ploen and Segeberg. 



Special Items ; 

I. The Naval Staff has summed up the opposing views of the 
German and Italian Navies about a permanent mine barrage in the 

French territorial waters off the Tunisian coast on the basis of f 

the latest reports and lias sent this information to the Foreign 
Office, with copies to the Naval Representative on the Armed 
Forces High Command Operations Staff, the German Naval Command, 
Italy, and the German Armistice Commission, France. The Foreign 
Office has been asked to make known its views on the issue. What 
the Navol Staff wants to find out is whether there are any real 
objections to the Naval Staff's position that the barrage should 
be laid by the French, who alone are able to control any neces- 
sary gaps in the minefield. For details see l/Skl I E 1616/42 
Gkdos. Chefs, in War Diary, Part C, Vol. VIII. 

II. Radio Intelligence Report No. 33/42 of the Naval Communica- 
tions Division, Communications Intelligence Branch contains a 
compilation of enemy reports intercepted by the radio decoding 
and intercept services between 10 and 16 Aug. 1942. 

The following is included: 

1. Reports on the naval situation sent by the Russian 
signal stations on the I.'urman Coast. 

2. The tactical organization of the naval air forces of f 
the Russian Baltic Sea fleet. 

3. Russian Army radio messages of 6 Aug. according to which 
all supplies stored in the harbors of the Caspian Sea and of the 
lower part of the Volga River are to be brought up the Volga with 
utmost speed. 

4. It is pointed out that convoy PQ 1C is not mentioned in 
a situation report intercepted in its entirety from the Iceland 
area on 6 Aug. This may be considered a confirmation of the nega- 
tive results of our air and submarine reconnaissance concerning 
convoy PQ 18. 



-240- 



CONFIDENTIAL 
20 Aug. 1942 

Situation 20 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

South Atlantic t 

On 19 Aug. radio Freetown issued an urgent message to 
all warships in its area, mentioning 2 positions directly 
northeast of the point where the DALHOUSIE was attacked. The 
message presumably refers to a patrol. 

The British press and radio have repeatedly reported about the 
appearance of a heavily armed German auxiliary cruiser in the 
South Atlantic off the West African coast. The ship is de- 
scribed as a 9,000 ton vessel, with 20 knots speed, armed with 
6 guns, some of 21 cm. caliber. The vessel is reported to have 
fired 60 rounds on an American merchant ship during the night, 
killing 15 men and capturing 46. PT boats lowered from the 
auxiliary cruiser encircled the American ship and sank her with 
3 or 4 torpedoes. 10 survivors have arrived in a port on the 
Atlantic Ocean. 

The M0RET0H BAY, which was reported converted to an auxiliary 
cruiser a yea.r ago, left the La Plata with a cargo of meat. 

Indian Ocean : 

An agent reports that 12 ships carrying planes and 
American troops passed through the waters off the Cape bound for 
Australia during the first week of August.- According to the 
same source, the tanker 'route between the Persian Gulf and 
Australia runs via Zanzibar. 

2. Own Situation : 

The failure of the UCKERMARK and the WESERLA1TD to' 
break through has necessitated a new arrangement for supplying 
ships "23" and "28". The two ships have therefore been ordered 
to get their fuel from the supply still left on the CHARLOTTE 
SCIILIEI.IANN which will arrive at a rendezvous 'point 8 miles 
farther south than point "Seide" and at the same longitude on 22 
Aug. The Naval Staff assumes that ship "28" will be the first 
to reach the rendezvous point, and that in order to take over 
the fuel supply she will head toward a calm spot because of the 
prevailing weather conditions. For this reason ship "23" should 
not steer for the rendezvous point before 25 Aug. After having 
supplied both ships with fuel oil, the SCHLIEMANN is to pro- . 
ceed to Japan. After refueling,, the two auxiliary cruisers are 
requested to report at their convenience how long they can re- 
main at sea, including their return voyage to western France, 
and the date on which the SCHLIEMANN was released. 

Preparations are under way to bring up supplies for ships "28" 
and "23" from Japan. (See Radiogram 1749.) 

Via Radiogram 1822 ship "10" is directed to take only the in- 
dispensable minimum out of the supplies sent with the TANNEN- 
FELS and leave the rest of the supplies, as well as the plane, 

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CONFIDENTIAL 
20 Aug. 1942 

for ships "28" and "23", and to ^ake over the prize crews. 

Information about the enemy situation was sent out via Radio- 
gram 2215. 



II. Situation West Area 

1, Enemy Situation : 

In the morning of 19 Aug. air reconnaissance spotted 
4 steamers with 2 destroyers and 1 escort vessel on a westerly 
course off Start Point and 9 steamers with 4 destroyers and 2 
escort vessels on a northeasterly course off Land's End. On 20 
Aug. several motor gunboats were sighted between Dover and Hast- 
ings, 2 destroyers and 2 steamers were spotted on a 45° course 
south of Dungeness, and 3 large war vessels and 12 landing 
barges 'were observed in Brighton. 

2. Own Situation : 

Atlantic Coast : 

At 0921 the blockade-runner WESERLAND reported that, 
while attempting to break through for a second time, she was 
attacked by enemy planes at 43° 11' N, 9° 20 » W during the night 
and was pursued by shadowers. She is trying to reach Finis- 
terre. Group West ordered the ship to proceed eastward within 
or along the Spanish territorial waters. (See Telegram 1035.) 

Further orders forbidding the WESERLAND to enter any Spanish har- 
bor except in emergency were sent via Radiogram 1239 along with 
the announcement that 3 of the new mine swejpers are en route 
to bring her in. 

In the meantime the Naval Staff informed the Naval Attache in 
Madrid that 2 outbound 1 lockade-runners have been under constant 
attack by British planes about 20 miles north of Cape Ortegal 
from 19 Aug. in the afternoon until tonight, and that one of them 
turned back at night and is steering for the French coast at 44° 
N, while the other has been heading for Finisterre since 0830. 
This ship will presumably enter a Spanish harbor. 

At 1908 a report came in from Group West stating that the UCKER- 
I.IARK had entered the Gironde at 1800. Shortly thereafter Group 
West reported that according to a message from the Naval Attache 
in Madrid the WESERLAND entered Corcubion Bay at 1100 and in- 
tended to proceed eastward at nightfall. Steps are being taken 
to bring her in. (See Telegram 1905.) 

At 2119 the WESERLAND reported that she left Corcubion Bay in 
easterly direction at 1800. 

Channel Coast : 

Group West announced that on 19 Aug. an unmanned harbor 
defense vessel was sunk in the harbor of Dieppe and that the 

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CONFIDENTIAL 

20 Aug. 19 42 

harbor was damaged by artillery fire and air raids. The Navy 
suffered the following casualties on 19 Aug.: 11 killed, 20 
wounded, 10 missing. Subchaser "1404" is a total loss. 

The Naval Staff expects to receive a comprehensive report about 
the part played by the Navy in warding off the enemy landing on 
19 Aug. Radically new aspects have not presented themselves so 
far. 

According to data compiled by the Air Force, 945 German planes 
were sent into action over the Channel on 19 Aug. The Air 
Force General Staff lists the following successes scored against 
enemy vessels: 1 destroyer, 1 assault boat, and 5 steamers sunk, 
1 motor gunboat probably sunk, 4 cruisers, steamers, 2 motor 
gun boats, 1 assault landing barge, 1 tug, and 1 crash boat dam- 
aged. 

The Army General Staff reports that out of the total of 4,200 
enemy soldiers participating in the landing no more than 400 to 
500, i.e. the equivalent of 2 landing parties, were Britishers. 
The bulk of the force consisted of 2 Canadian brigades, a number 
of Canadian engineer troops, and some Norwegians and Yugoslavs. 
No U.S. troops participated, and the presence of De Gaulle 
soldiers is not confirmed^ U.S. and De Gaulle fliers might 
possibly have participated in the operation. 

The objective .was to land the Canadians with the 28 tanks in the 
center of the sector so that they could demolish the harbor and 
combat installations of Dieppe and raid the division headquarters 
in Arque-la-Bataille (6 km. southeast of Dieppe). Upon comple - 
tion of this task, the landing force was to withdraw . At the 
3ame time the two British landing parties were supposed to de- 
stroy the batteries on both sides of Dieppe and to seize the 
vessels in the Dieppe harbor and take them to England. On the 
whole, the British had a correct picture of our defenses. 

From a military standpoint such a limited operation appears 
even less understandable than from a political standpoint. A.t best, 
the seizure of Dieppe for a few hours would have , offered the 
enemy facilities for qa ickly unloading a few more regiments with 
some heavy weapons, tanks, and guns. According to the findings 
of the General Staff, it appears dubious whether the 26 vessels 
sighted off Portsmouth were assembled there to be used as trans- 
ports if the first landing wave had been more successful. But 
even if the enemy had succeeded in establishing a bridgehead in 
the Dieppe area by landing a force estimated to have totalled 
15,000 to 20,000 men, such an operation would have made sense 
only in conjunction with a successful attempt to tie up our re- 
serve divisions by simultaneously landing more forces of a similar 
or larger size elsewhere in the west area, and especially, by 
throwing strong airborne forces behind our lines. Since no such 
plans seem to have existed — there are, at least, no indications 
to this effect — the operation of 19 Aug. was bound to end. in a 
military setback for which no military justification can be offered, 

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CONFIDENTIAL 
20 Aug. 1042 

Naval Situation on 20 Aup;. ; 

The torpedo operation of the 4th and 1st PT Boat Flotillas against 
the convoy route in quadrants AN 7392 and 7391 in the night of 19 
Aug. was unsuccessful. An enemy destroyer chased and drove off 
the flotillas. For brief reports see Telegrams 1020 and 1110. 

3 boats of the 5th PT Boat Flotilla have transferred from Le Havre 
to Cherbourg. 

In the evening 4 rubber rafts with 8 Britishers and 1 American 
aboard were rescued off Le Treport. 

3. Special Items ; 

Group West has transmitted the results of its experience 
with the 3rd Torpedo Boat Flotilla operations in the west area to 
the Commander, Destroyers, with copies to the Naval Staff and the 
Fleet. The conclusion is that the flotillas should be composed of 
torpedo boats of the same type, preferably type 37. (See Telegram 
1115.) 



III. North Sea. Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

No noteworthy reports have been received. 

Own Situation ; 

Convoy and patrol operations in the area of the Command- 
ing Admiral, Defenses, North proceeded according to plan. 2 ground 
mines were swept near Elbe I and a third one was swept off Terschel- 
ling. Toward midnight enemy planes attacked our convoy in the 
German Bight three times without scoring any successes. Enemy in- 
cursions in the Netherlands area and over the convoy route between 
Vli eland and Terschelling in the German Bight were probably for the 
purpose of laying mines. 

On 15 Aug. the Commanding Admiral, Defenses, North issued operations 
orders for the laying of minefield 5a, code name "Eleanor n , and 
minefield 10a, code name "Fuenfte Kolonne". The new minefields, 
which are to strengthen the Westwall barrage, will be laid by the 
mine layers ROLAND. KAISER, and SKAGERRAK, and by mine ships M "82" , 
M "102", and M "20". Escort will be provided by the 8th Motor Mine 
Sweeper Flotilla, gunboat K "l n , and 2 boats of the 21st Mine 
Sweeper Flotilla. The force is under the strategic command of the 
Commanding Admiral, Defenses, North and under the tactical oommand 
of the commander of the ROLAND. 

The force which is to carry out the mine-laying operation "Eleanor" 
has been ordered to depart on 21 Aug. 



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CONFIDENTIAL 

■ !.■■ —■ 1 ■■■ !■■!■ Ill-— ■ !■! ■■<■! 

20 Aug. 19 42 

2. Norway, Arctic Ocean ; 

Enemy Situation ; 

At 1450 radio intelligence intercepted a British message 
about a submarine, evidently the U "435", entering the Ice Fjord 
(Spitsbergen) . 

At 1425 air reconnaissance sighted 1 battleship, 1 vessel presumed 
to be a ,light cruiser, and 3 destroyers proceeding on a southerly 
course 35 miles west of Reykjavik, and at 2020 1 heavy and 1 
light cruiser proceeding on a 270° course 130 miles east of Jan 
Mayen. It is possible that these vessels are being sent into 
action against the expected breakthrough of our ship into the 
Atlantic Ocean. A submarine reported that according to sound 
location, 1 steamerwas proceeding on a 60° course in. quadrant AC 
1285 toward midnight. No contact was established, and it is 
therefore not clear whether the steamer was part of a convoy. In 
any case, it is quite possible that the cruisers sighted east of 
Jan Mayen are connected with it. 

In the afternoon 3 large ships were located in Reykjavik and 1 
vessel presumed to be a light cruiser, 2 tankers, and 8 large 
vessels in the Hval Fjord. 

Interpretation of aerial photos taken on 18 Aug. showed 1 battle- 
ship of the KING GEORGE V class, 2 heavy cruisers of the CUMBER- 
LAND class, and 1 U.S. cruiser of the OMAHA class in the Hval 
Fjord, and 1 U.S. destroyer, 1 U.S. gunboat of the ERIC class, 1 
mine layer, and 1 aircraft recovery ship, in addition to the 
previously reported merchant vessels, in Reykjavik. 

Own Situation ! 

Due to prevailing weather conditions the Commanding Ad- 
miral, Norway has ordered increased readiness in his area. Other- 
wise there is nothing noteworthy to report. 

A British press report states that it has been confirmed that a 
submarine sank the steamers B0LTENHAGEN and GE0RG L.M. RUSS. .Thus 
enemy submarines are again operating off the west coast for the 
first time in 1 l/2 years. Group North has asked the Commanding 
Admiral, Norway for information about any defensive steps planned 
in this connection, apart from mine-laying. 

Operation 'Sunderland ": 

According to a report from the Admiral, Arctic Ocean, 
photographic reconnaissance shows the following: 

a. Due to the prevailing ice conditions, submarines can 
pass through the Kara Strait only once, if absolutely necessary. 

b. Amderma is nothing but a small settlement with a pier. 
Coal is apparently mined above ground in the vicinity of the 
settlement. 

Consequently, an operation against Amderma would not pay. 



-245- 



CONFIDENTIAL 
20 Aug. 1942 

Group North has agreed to an earlier termination date for opera- 
tion "Wunderland". However, the coast should be reconnoitered in 
westerly direction in any case. 

The information about Amderma at the Naval Staff is scarce. 

According to findings by the Naval Intelligence Division, Foreign 
Merchant Marine Branch, the convoy which has been en route from 
Petropavlovsk via the Arctic Ocean to White Sea harbors since the 
end of July is presumed to consist' of 23 vessels ranging from 
1,600 to 4,800 GRT. For a list of ship names see l/Skl 28470/42 
geh. in File "V/underland". 

Group North has been informed accordingly. 

Submarine U "456" delivered ammunition to submarine U "209" in 

quadrant AT 4884. Immediately thereafter she twice attacked an 

icebreaker escorted by patrol vessels without any success and then 

gave up the pursuit since the icebreaker seemed to be equipped 

with excellent sound locators. ' 

Mine Operations in the Arctic Ocean ; 

On 10 Aug. Group North issued a directive to the Admiral, 
Arctic Ocean', with copies to the Naval Staff, the Fleet, and the 
Commanding Admiral, Cruisers, which must be carried out with ut- 
most speed because the route via eastern Siberia will be navigable 
only during a short period. 

The directive refers to the following operations: 

a. Operation "Zar", in which 200 standard mines type F and ■ 
100 type C are to be laid in 20 sections off the northern tip and 
northwest coast of Novaya Zemlya. The undertaking is to be carried 
out by mine layer ULM. 

b. Operations "Zarewitsch" and "Romanow" are to be carried 
out by destroyers, possibly in a single operation, south and north 
of Kolguyev Island. 

c. Operation "Rasputin" is to be carried out by the KOELN > 
and 2 destroyers in the western approach to the Matochkin Shar, 

In this case the ships will have to operate to the very limit of 
their operations range. 

d. Operations "Peter", "Paul", and "Iwan", are to be 
carried out by submarines in the western outlet of the Matochkin 
Shar, in the western outlet of the Yugor Strait, and off the 
Pechora estuary. 

e. Operation "Rurik" is to be carried out by a submarine 
which will mine the waters off Amderma. 

Operation "Knospe" t 

Acting in agreement with the Naval Staff and the Chief 
of the Meteorological Division of the Naval Staff, Group North 
will try to send a submarine to bring in the "Knospe" personnel. 



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CONFIDENTIAL 
20 Aug. 1942 

Since the attempt may fail because of prevailing ice conditions, 
the weather ship with automatic weather reporting gear in Oslo, 
will be sent out simultaneously. 



IV,. A Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation ; 

It was observed that 3 destroyers had changed berths 
in Kronstadt . One of the destroyers practised firing on a moving 
target. 

According to a. report of the Air Force General Staff, photographic 
reconnaissance carried out in August has so far sh6wn 169 vessels 
in Leningrad and 195 in Kronstadt. 29 of the vessels in these two 
harbors were submarines. 439 vessels were counted in Lake Ladoga, 
including 40 war vessels, 5 auxiliary warships, 2 torpedo boats, 
and 32 motor mine sweepers and motor boats. 

2. Own Situation : 

6 men from the steamer V/URI were killed and 59 are miss- 
ing. The latter figure might be revised downward if some of the 
missing are found. 

On 18 Aug. the Commanding Admiral, Defenses, Baltic Sea went aboard 
the flagship REIKER. Otherwise no incidents were reported from the 
area of the Commanding Admiral, Defenses, Baltic Sea, except for 2 
mines swept off Samsoe and Kallundborg. 

On 18 Aug., at 1400, an enemy submarine sank the Swedish steamer 
LILJEVALCH (8,770 GRT) proceeding in a 16 vessel convoy within 
Swedish territorial waters off Vaestervik. Swedish war vessels 
pursued the submarine with depth charges but the effect could not 
be ascertained. 

Operation "Seeigel XXVII" In the Gulf of Finland was carried out 
according to plan. The laying of the "Seehund" minefield was 
postponed because of unfavorable weather. Mine-sweeping and con- 
voy operations in the area of the Commander, Mine Sweepers, Baltic 
Sea proceeded according to plan without incidents. 

3. Special Items ; 

The Armed Forces High 'Command Operations Staff has taken 
note of the Navy's, demand for priority in* the utilization of the 
Russian harbors in the Baltic Sea (see War Diary 1 Aug.), adding 
that any orders necessitated by this measure must be approved by 
the Fuehrer and will be submitted to him in time. 

Thus, no final decision has as yet been passed on 
.the matter. The Naval Staff Quartermaster Division 
has been informed accordingly. 



-247- 



CONFIDENTIAL 
20 Aug. 19-12 

V. Merchant Shipping 

1. The Armed Forces High Command Operations Staff has re- 
vised the instructions for the Supply and Transportation Office 
of the Armed Forces Overseas and the directives for the execu- 
tion of overseas transports in accordance with the present ex- 
panded tasks. The Supply and Transportation Office of the Armed 
Forces Overseas is the executive &gency of the Armed Forces High 
Command Operations Staff for all supply and transportation problems 
of the German Armed Forces in Scandinavia and Africa, as well as 
for overseas transports of the;-Armed Forces to and from the Baltic 
countries and across the Black Sea. i'he new directive entrusts 
this office with handling transports of troops, men on leave, and 
Armed Forces supplies for Norway, Sweden, Finland, the Baltic 
countries, and Africa, as well as across the Black Sea. Orders 
issued by the Supply and Transportation Office of the Armed Forces 
Overseas for arranging these transports are binding for all com- 
mands concerned. Transports by naval ships or by special-purpose 
planes of the Navy and the Air Force are not subject to this 
regulation unless they affect the over-all Armed Forces transport 
program. 

None of the Armed Forces offices is permitted to charter on its 
own initiative any ships or cargo space to or from Scandinavia, 
the Baltic countries, and Africa, or across the Black Sea. 

For a copy of the Armed Forces High Command directive see 
l/Skl 20376/42 G-kdos. in files I op IV, Vol. 1. 

2. In its Foreign Merchant Shipping report no. 18/42, the 
Naval Intelligence Division, Foreign Merchant Marine Branch gives 
an account of the Sv/edish merchant shipping in the present war as 
of 1 Jul. 1942. According to this, the 83 Swedish ships totalling 
268,000 GRT which are operating for the enemy represent no more 
than about 50f of those which were available to the enemy powers 
at the outbreak of the war. 35 vessels totalling 174,000 GRT are 
employed in the Goeteborg traffic, 9 ships are used for the ex- 
change of diplomatic personnel, for repatriation purposes, and 
for Red Cross missions, while 389 vessels totalling 791,000 GRT 
are within the German-controlled areas, including 48, or 213,000 
GRT, which are laid up. 

Another report deals with the ship traffic and transport of ma- 
terial in the Persian Gulf between April ami June 1942. Here the 
traffic has increased by 25?j as compared with the first quarter 
of 1942. It is worth noting that the British transport of 
supplies to Russia via the '.Vhite Sea is about equal to that dir- 
ected via the Persian Gulf. 



VI. Submarine Warfare 

1. Enemy Situation ; 

Reconnaissance in the southern rendezvous area was 
particularly active over the Bay of Biscay and off the northern 

-248- 



CONFIDENTIAL 
20 Aug. 1942 

coast of . .Spain. However, no submarine sighting reports were 
intercepted in this area. British vessels were located some 
1G0 miles northwest of Cape Vilano and southwest of Porcupine 
Bank . 

Some submarine sighting reports have been intercepted from off 
the American east coast and the West Indies. All U.S. warships 
were warned of the danger zone in the area west of the Florida 
Strait between 25° 10' IT, 24° 36' II, 82° 10' W, and 81° 23' W 
through which they may proceed only' with the permission of U.S. 
naval authorities. 

2 . Own Situation : 

For submarine operations in the Arctic Ocean see Sit- 
uation Arctic Ocean. 

In quadrant BE 8696 outbound submarine U "107" detected by means 
of her newly-installed intercept apparatus 6 times in 24 hours 
that she was being located by the enemy. Each time the submarine 
escaped a possible attack by submerging. 

This is one practical example illustrating the use- 
fulness of the intercept apparatus. 

No further successes were scored during the operation against the 
convoy in quadrant ED 83. Submarine U "217" probably sank an 
8,000 GRT tanker outside of Curacao and destroyed a freight- 
carrying sailing vessel with gunfire in quadrant ED 75. 2 tankers 
were located in the harbor of Aruba. Otherwise the traffic was 
light. 

The submarines operating in the South Atlantic failed in their 
search for the convoy in quadrants CF 23 and CF 31. The opera- 
tion was discontinued. 

Acting on the directive of the Naval Staff, the Commanding Ad- 
miral, Submarines has ordered submarine U "507" to abstain from 
operating directly off the Brazilian ports or against the 
Brazilian coastal traffic and from carrying out any operations 
within the 20 mile zone. This directive of the Naval Staff was 
issued at the request of the Foreign Office. For details of this 
particular angle of the issue see War Diary, Part C, Vol. VIII. 

No noteworthy reports were received from the Mediterranean. Sub- 
marine U "83" v/as brought in successfully. For further details 
see supplement to the submarine situation in War Diary, Part B, 
Vol. IV. 



VII . Aerial Warfare 



1. British Isles and Vicinity : 



In the course of the large-scale operation during the 
Dieppe incident of 19 Aug. 128 enemy planes were definitely shot 
down and 26 probably. Of this total, fighters brought down 102 
planes, bombers 6, and anti-aircraft artillery 20. For successes 



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CONFIDENTIAL 
20 Aug. 1942 

scored on ships see Situation './est Area. 

No noteworthy incidents occurred during the day of 20 Aug. In the 
night of 20 Aug. a small number of planes were sent into action 
against Portsmouth. 137 enemy planes flew over the German-con- 
trolled territory, G5 of which penetrated into the Reich area. 
It is likely that 30 of the enemy planes dropped mines in the 
Baltic Sea and its entrances. Some 50 enemy planes were active 
over the eastern area, concentrating their attacks on Warsaw. For 
damage see daily situation report. 

-2. Mediterranean Theater : 

Reconnaissance activity was reported concentrated over 
the western and central Mediterranean. 

3. Eastern Front ; 

97 enemy planes were reported shot down on 19 Aug. and 
65 on 20 Aug. For results of air reconnaissance over the Kronstadt 
Bay, Lake Ladoga, and the Arctic Ocean see Enemy Situation, Arctic 
Ocean and Baltic Sea. 1 mine sweeper was sunk and another damaged 
in attacks on war vessels in the northern bay of Lavansaari. 

136 transport planes brought supplies for our troops fighting near 
Demyansk. 



VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

The British Admiralty has published further details con- 
cerning the operations carried out in the Mediterranean last week 
with the purpose of bringing up supplies and reinforcements to 
Malta. The warship losses mentioned in the report have already been 
discussed. According to this report, a total of, at least 66 Gernan 
and Italian planes were supposedly destroyed. In addition to 2 
Italian cruisers damaged by torpedo hits from submarines, it is 
claimed that 2 Axis submarines and 2 PT boats were definitely sunk. 

According to an intelligence report from Spain, at 0200 17 steamers 
passed through the Strait of Gibraltar in easterly direction with- 
out entering port. At 0230 the ARGUS, the FURIOUS, 1 battleship of 
the NELSON class, 2 cruisers, and several destroyers departed from 
Gibraltar on an unknown course, presumably to the west. On 20 Aug. 
the following ships were located in Gibraltar: 1 ship of the 
ILLUSTRIOUS class, still in dock, and 2 small cruisers, one of them 
of the FIJI class, likewise still in dock. Photographic recon- 
naissance showed the number of ships in Malta reduced by 1 destroyer 
and 2 patrol vessels, which the Italian air reconnaissance had re- 
ported as 3 destroyers off La Galite on 19 Aug. 



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CONFIDENTIAL 
20 Aug. 1942 

Air reconnaissance off the coasts of Syria and Palestine failed 

to yield any results. 

2. Own Situation, Mediterranean : 

On 19 Aug. the second of the 2 Italian PT boats which 
had run aground on the Tunisian coast was refloated. In the 
night* of 19 Aug. enemy planes made a heavy attack on Tobruk. Air 
reconnaissance oyer the western Mediterranean did not yield any 
results of tactical significance. 

3. Transport of Supplies to North Africa t 

According to a directive of the Armed Forces High Com- 
mand Operations Staff, the 22nd Airborne Division will be re- 
organized and transferred to the African Panzer Army less one 
infantry regiment. The transfer will presumably begin toward 
the end of September. The regiment left behind is to be ferried 
to Crete as soon as the transport situation permits. The regi- 
ment may be brought over to Africa at some later date. Trans- 
ports carrying reinforcements for the African Panzer Army retain 
their priority over transports to Crete. 

Transport of supplies to North Africa has been resumed on an in- 
creased scale. The CITTA DE ALESSANDRIA convoy en route from 
Suda to Tobruk entered Derna and left again. In the morning 
enemy planes attacked the convoy of the steamer DORA north of 
Cape Stilo. No details have as yet been reported. t 

During the month of July a total of 45,507 tons, including 18,301 
tons of German cargo, were unloaded and 20,158 tons, including 
12,878 tons of German cargo, were loaded in Benghazi. 

4. Area Naval Group South ! 

Aegean Sea t 

Some of the convoys were rerouted because of the sub- 
marine menace. Otherwise the convoy operations proceeded as 
planned. 

' Black Sea ; 

Enemy Situation ? 

Only a few convoys were observed moving along the north- 
eastern coast. 

Own Situation : 

On 19 Aug. the 3rd Motor Mine Sweeper Flotilla sank 2 
of 4 enemy escort vessels encountered off Temryuk. The 2 other 
escort vessels, as well as passenger steamers which probably 
carried troops and equipment, fled back to port. One of the 
vessels sunk was armor-plated. Group South suggests that the 
success be included in the Armed Forces communique. 

In the afternoon 4 vessels of the 3s t PT Boat Flotilla departed 
for operations in the Tuapse area. 

-251- 



CONFIDENTIAL 
20 Aug. 1942 

The transport of supplies from Taganrog to Azov by means of land- 
ing barges and lighters is under way. 

Special Items ; 

(1) The Armed Forces High Command Operations Staff has issued 

a directive to the Naval Staff, the Commanding General, Armed Forces, 
Southeast, and the General Armed Forces Office, with copies to the 
Deputy for Labor and to the Foreign Office, demanding that, the pro- 
duction of subchasers in the shipyards of Salamis, Skaramanga, and 
Piraeus be increased by all possible means and that the Naval Staff 
arrange with the Commanding General, Armed Forces, Southeast for 
recruiting German specialists as well as Greek workers for this job. 
The Greek shipyard workers are to be allotted ration C. 

(2) Group South points out that there will be many excellent 
possibilities for maintaining schools and training courses in the 
German-occupied coastal area of the Black Sea after the cessation of 
military operations. Group South believes that the Navy should act 
soon to lay hands on these facilities. (See Telegram HOC.) 

The Naval Staff Quartermaster Division will attend to this matter. 



IX. Situation East Asia 

The U.S. Navy Department reports that a U.S. submarine sank a 
Japanese cruiser or destroyer in the western Aleutians. According 
to an Exchange Telegraph report, a large Japanese convoy consist- 
ing of troop transports was located in the vicinity of the Solomon 
Islands, 



X. Army Situation ' 

1. Russian Front : 

Army Group A : 

At the Ruoff Army Group, Rumanian cavalry troops broke 
through the enemy position west of Kurchanskaya in westerly dir- 
ection. Part? of the V Army Corps advancing south of the Kuban 
River repulsed enemy tank attacks after having seized Krimskaya 
and advanced further toward the west-southwest. Enemy rear guard 
attacks on the advance elements of the division advancing south 
and southeast of Krasnodar were repulsed. The western wing of the 
XLIX Mountain Corps is advancing southward in the 3oishaya Laba 
valley. Parts of the 1st Mountain Division are engaged in combat 
south' of the Klukhor Pass in the Klydzh valley. The southern wing 
of the 1st Panzer Army has made a further advance. The 23rd Panzer 
Division established a bridgehead over the Ovana River near Maisky. 
The LII Army Corps is advancing in southeasterly direction as 
planned. 



-252- 



20 Aug. 1942 

Army Group B: 

In its eastward advance, the 24th Panzer Division 
reached the southern border of Lake Tsatsa and encountered a 
strong enemy force while advancing toward Tsatsa in northerly 
direction. The 14th Panzer Division is engaged in a battle on 
the heights northwest of Tsatsa, The 6th Army repulsed 10 
enemy attacks on the bridgehead across the Don River northwest 
of Stalingrad. The enemy" made various attempts to cross the Don 
River between Kremenskaya and Verkhnl Kan on; in most of the in- 
stances the crossing was prevented. Concentrations of enemy 
tanks extending up to 30 km. in depth were observed east and north 
of Voronezh and southeast of Yelets. 

Central Army Group ? > 

The battle for the Zhizdra position is extremely diffi- 
cult due to the presence of natural and artificial obstacles. En- 
emy attacks against the 3rd Panzer Army, particularly at the 
southeastern edge of the penetration east of Sychevka and north 
of Rzhev, continued unabated. 

Northern Army Group : 

The enemy also persisted in his attempts to break 
through the land bridge southeast of Staraya Russa. His at- 
tempt to widen the breach at the northeastern front of Demyanok 
failod. Our troops attacked enemy assembly positions east of 
the Volkhov River and south of Soltsy. 

2. Finnish Front : 

Local fighting was reported. 

3. . North Africa ; 

No noteworthy reports have been received. 

4. France ; 

For an account of the enemy landing at Dieppe see 
Situation West Area. For further military details see dally 
situation report. 



^W-iHKKHS^KHHBHKHKKHKHHttHi- •!!-!!■ 



-253- 



CONFIDENTIAL 
31 Aug. 1943 

Items of Political Importance 

great Britain: 

According to foreign correspondents reporting from London, the 
news about the landing at Dieppe was reoeived rather calmly in 
Britain. It seems that the people believe the semi-official state- 
ments about the limited soope of the operation and its alleged 
psychological effect on the enemy. Most neutral newspapers, on 
the other hand, are unable to find any plausible explanation for 
the purposes and object of an undertaking whioh, after all, entailed 
quite heavy losses. 

India ; 

The Moslem League has now also come forward with a statement dis- 
puting the claims of the Congress Party and calling on the British 
to recognize immediately and guarantee the Moslems' right of self- 
determination, and to pledge acceptance of the Pakistan statute. 
It is understandable that in view of this situation the Government 
does not intend to give in. This is also why the Vioeroy's reply 
to Gandhis letter in which Gandhi wanted to explain once again 
his views about the Congress Party resolution was cool and negative. 

Argentina: 

According to the German News Agenoy (DNB) , the majority of the 
Argentine newspapers condemn the sinking of Brazilian vessels. It 
is pointed out that a change in Brazil's political situation with 
relation to the Axis powers will not fail to affect the attitude 
of Argentina. 

Brazil : 

In view of the sinking of 5 Brazilian vessels, political circles in 
Washington expeot Brazil to enter the war In the near future, calling 
attention to the fact that Brazil's participation in World War I 
was provoked by similar oircumstances. Brazil's attitude is 
similar to that of the U.S.A. before her entry into the present 
war, when American planes were already under orders to attack Axis 
submarines in American waters. Similarly Brazilian planes partici- 
pated in the recent sinking of the 3 German submarines, and a 
report from Rio de Janeiro has just brought the news that a third 
submarine was sunk by Brazilian forces off Bahia. 

All German citizens have been forbidden to leave Brazil so that 
they can be held as hostages for the 35 Brazilians interned in 

Corapiegne. 

The Brazilian Foreign Minister is trying to bring about a joint 
declaration of all American countries against the ship sinkings. 

Chile : 

Reuter reports that the Chilean Government has issued a note to 
the German Government, protesting against the sinking of the 5 
Brazilian ships and stating that such an action against a oountry 
with which Chile maintains friendly relations is felt as directed 
also against Chile herself. 



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CONFIDENTIAL 
31 Aug. 1943 

Peru : 

The Peruvian Foreign Ministry has communicated to the Brazilian 
Government its indignation about the submarine attacks on Brazilian 
ships. 



Speoial Items 

The Naval Representative on the Armed Forces High Command Opera- 
tions Staff has transmitted the report of the General of the 
Engineers and Fortifications, Army High Command on the conference 
with the Fuehrer on 13 Aug. concerning the Atlantic Wall. The 
report (l/Skl I a 20644/42 Gkdos.) has been placed- at the disposal 
of the Chief, Naval Staff Quartermaster Division; the Chief of the 
Fleet Branch, Naval Staff Quartermaster Division; and the Chief, 
Naval Ordnance Division. Another copy is in War Diary, Part C, 
Vol. X. (Compare the report by the Deputy Chief, Naval Staff 
Quartermaster Division on this subject at the Conference on the 
Situation with the Chief, Naval Staff on 17 Aug. in War Diary 17 
Aug.) 

On 16 Aug. the Armed Forces High Command Operations Staff accord- 
ingly issued a directive for the development of the Channel coast 
and Atlantic coast defenses. According to this direotive, every 
effort and means are to be used to strengthen these ooastal defenses 
on the pattern of the Westwall to such an extent that by the spring 
of 1943 any attack from the air, sea, or land would appear hopeless. 
First of all, the submarine bases and harbors with their facilities 
for a large-scale enemy landing must be protected by a compact belt 
of defenses extending far enough in width and depth to make sure 
that the submarine pens will not be destroyed or the harbors seized* 

The Commander in Chiefs 'Vest is to submit immediately the final 
plans for the main line of defense in the harbor areas and a de- 
tailed plan for the construction of the required 15,000 fortifi- 
cations. 

On 21 Aug, the Naval Staff Quartermaster Division issued directives 
to the naval offioes concerned. 



Situation 31 Aug. 1943 

I. War in Foreign Waters : 

1. Enemy Situation : 

South Atlantlo : 

The radio decoding and intercept service intercepted a 
large portion of an instruction of 14 Aug. issued by the British 
communication officer at Cape Town to ships en route in either 
direction between 

(l) the British Isles and Africa 



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CONFIDENTIAL 
31 Aug. 1943 

(3) and between ports In South and West Africa, lnoluding 
ships whioh have withdrawn from OS convoys. The ships are to 

300 miles from the African coast between Cape 

Town and 3° S, between the coast and a line leading through 3° 8, 
3° 30' E; equator, 1° W; 3° 30' S, 7° 30' W; equator, 30° W; 

5° N. 33 6 W; 10° N, 36° W . The rest of the message is 

missing. Evidently, the indicated line, which follows the coast, 
constitutes the boundary whioh unescorted vessels should not cross 
in the direction of the sea. Combined with other course instruc- 
tions that have been intercepted, this leads to the conclusion 
that merchant shipping between the Cape of Good Hope and the British 
Isles via the Freetown route has been rerouted nearer the coast, 
probably due to the appearance of our auxiliary cruisers in the 
central area of the South Atlantic. 

For the routing of the ship traff io from the Cape of Good Hope to 
North America and vice versa see War Diary 17 Aug. Both routings 
indicate that the oentral area of the South Atlantic is being 
avoided and that only fast convoys with strong escort pass through 
this area at the present time. 

3. Own Situation : 

The directive to the CHARLOTTE SCHLIEMANN concerning the 
delivery of fuel oil to the auxiliary oruisers "38" and "33", 
along with corresponding sailing orders (see War Diary 30 Aug.), 
were sent via Radiogram 0533. The Naval Attache, Tokyo reports 
about the oordial reception of the DOGGERBANK by the Japanese 
Navy in Batavia, where she stayed 4 days. Numerous troop trans- 
ports loaded to oapaoity arrive in Batavia every day, allegedly 
for the invasion of Australia. 

Information about the enemy situation was sent out via Radiograms 
0333 and 1357. The German Armistice Commission, France transmitted 
the estimated positions of the French steamers ILE DE QUESSANT. 
ILE DE NOIRUOUTIER, ILE DE RE, ALDEBARAN, and DUC D'AUUALE as of 
30 Aug. at 3400 via Radiogram 1130. 

The German Naval Command, Italy announced that the Italian tankers 
ARCOLA and TAIGETE will leave Freetown for Curacao on 21 Aug. The 
timetable was also given. (See Telegram 1640.) 

It is rather strange that the two tankers should 
be foroed to oarry fuel oil .for the British for 
the third time as compensation for the fuel oil 
allooated by the British by agreement for the 
Italian ships carrying repatriates from East Africa. 
Unfortunately, the Italian Navy has so far negleoted 
to answer any of the German inquiries in this con- 
nection. The matter should oertainly be investi- 
gated. 



LL Situation West Area 

1. Enemy Situation ; 

Aocording to the report of the Naval Attaohe in Lisbon 



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CONFIDENT IAL 

IM HMHM II I II I ■ ' ! mu III I ■■" / 

21 Aug. 1942 

of 18 Aug., the Portuguese stealer PESCADORE, which left Vianna 
do Ca8tello for Bilbao on 11 Aug., seems to have been seized by 
the British together with her entire cargo and brought Into 
Gibraltar. 

2. Own Situation : 

Atlantic Coast : 

The Gironde estuary has been temporarily closed to ship- 
ping because -it is suspected that there are aerial mines in these 
waters. 

Group West informed the WESERLAND via Radiogram 1021 that 3 mine 
sweepers of the new type are en route to meet her at the edge of 
the Spanish territorial waters and that they will presumably be 
at 4° W at 1830. Glose air escort and fighter operations have 
been ordered by the Air Commander, Atlantic Coast. 

Group West has transmitted' a report from the UCKERMARK. From 1600 
on 19 Aug. to 0300 on 20 Aug. the ship was shadowed alternately by 
Liberator, Sunderland, Whitley, and Wellington planes, and was 
attacked with 42 bombs. Contact was maintained until 0400. The 
ship is leaking oil slightly and is slightly damaged. 3 men were 
wounded. 

4 

Prom this experience the Group Command concludes that only a con- 
tinued strong escort up to at least 18° W will protect the blockade 
runners. A telegram to this effect was sent to the Naval Staff, 
with copies to the 3rd Air Force and the Air Commander, Atlantic 
Coast. (See Telegram 1035.) 

Group West intends to let torpedo boat T "4", which is not fully 
ready for combat, participate in the scheduled operations. (See 
Telegram 1200.) 

Channel goast: 

3 vessels of the 5th PT Boat Flotilla have transferred 
from Le Havre to Cherbourg. 

Enemy Landing at Diep p e on 19 Aug. ; 

(l) According to a report of the "Combined Headquarters" 
about the "Commando Raid 11 at Dieppe, strong military forces were 
brought over by warships and transports and entered the waters off 
the French coast at the designated points at 0450. Then, at the 
stipulated time, they landed at 6 points on the shore. Planes pro- 
tected the landings and returned later to proteot the ships. The 
objectives of the operation were: 

a. To probe the defense lines of the coast area by launching 
an attack on a larger scale than any of the previous ones. 

b. To destroy German batteries and a radio station which 
played an important part in the German attacks on our oonvoys in 
the Channel. 



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CONFIDENTIAL 
31 Aug. 1943 

o. To take prisoners in order to obtain vital information. 

d. To inflict damage on German troops and their equipment. 
Above all, the attack was to serve reconnaissance purposes es- 
sential to our offensive operations. In the course of the attack 
it became clear that the enemy had shortly before reinforced his 
troops and guns in the region of Dieppe. Despite fierce resistance, 
our commandos were able to land on the beach with several tanks. 
They succeeded in destroying 3 batteries and a radio station, as 
well as in sinking 3 small vessels and taking a number of prisoners. 
Enemy troops suffered heavy casualties. 

Our troops, consisting predominantly of Canadians, held out on the 
coast from dawn for almost 9 hours. Then they were re-embarked on 
the warships which had supported their operations with gunfire. 
Before withdrawing, our troops blew up and destroyed the tanks 
which had landed and some of which had suoceeded in breaking into 
the town. 

Although originally our Air Force units were only assigned to sup- 
port the landing operations, one of the greatest air battles of 
this war developed over this sector. The Germans were forced to 
bring up plane reinforcements from all parts of occupied France, 
from Holland, and from Belgium. Our fliers engaged some of these 
fore es even before they were able to reach the combat zone. Strong 
formations were dispersed over the Somme estuary. 91 German planes 
were officially reported destroyed in combat, and approximately 
twice as many were probably destroyed or damaged. We lost 98 
planes in these operations; 30 of the pilots were rescued. 

All through the battle, our fleet forces were exposed to furious 
air attacks and heavy gunfire from the shore. DesDite this fact, 
our losses were light and comprised only a number of landing ves- 
sels. The destroyer BERKELEY, however, was so badly damaged that 
she had to be scuttled. The majority of the orew was rescued. 
Prior to the landing operations we haopened to encounter the escort 
vessels of an enemy convoy. In this encounter 1 armed German trans- 
port was sunk and another set on fire. This engagement delayed 
the landing of the unit involved by 30 minutes. 

Due to the heavy fighting which developed during the operation, 
our casualties are high but by no means excessive if compared with 
the scope and importance of the operation. Our ships left the 
coast only after taking aboard all the troops who were able to 
return. 

The -:aval forces, whioh included a Polish destroyer and Free 
French forces, were under the command of Captain J. L. Hallet. 

The reoort goes on enumerating the participating ground and air 
forces. 

Reuter reports that the troops returning from Dieppe were put 
ashore in a south coast port on the morning of 30 Aug. Most of 
them were wounded, many had some captured German equipment. They 
brought with them a number of German prisoners, including quite 
a number of officers. 



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CONFIDENTIAL 



21 Aug. 1942 



(2) Group West reported the following supplementary 
information: 

In addition to the subohaser which was sunk, the coastal auxiliary 
sailing vessel FRANZ was also sunk, probably by gunfire. The crew 
took to a lifeboat and landed near Le Treport. As soon as the 
engagement began, the radiotelegraphic equipment stopped function- 
ing on all 3 escort vessels, and it was therefore impossible to 
send off a "most urgent" (KR) message. However, the battle was 
observed from the shore and, due to this fact, the coast was alerted. 
At 0510 the Naval Communications Officer, Le Havre radioed as fol- 
lows: "3 miles off Dieppe surface forces attacking convoy." Group 
West informed Army Group D and the 3rd Air Foroe by .telephone that 
this was presumably one of the usual attacks on our convoys. At 
0535 the 3 harbor patrol vessels posted off Dieppe were attacked. 
Thereupon the Naval Signal Station at Dieppe fired a signal to alert 
the coast. Later the vessels entered port without having suffered 
losses. In the night of 19 Aug. one PT boat group combed the coastal 
waters from Boulogne westward and another from Cherbourg eastward. 
All they picked up was one Polish pilot. The radar service failed 
to produce any information about the enemy forces prior to the re- 
port about the naval engagement off Dieppe. The equioment under 
construction at Point d'Ailly is not yet ready for use. Following 
the firing of the alarm which warned the coast, the main naval 
forces were sent into action as Combat Group 2 under the command 
of Lt. Goebel of the Naval Coastal Artillery (killed in action). 
Parts of the combat group were enoircled in their defense positions 
and trenches in front of the fortifications, and fought the enemy 
tanks which had been brought ashore with small arms and hand 
grenades. Another combat group fought at the signal station. The 
behavior of the oombat groups was exemplary: the men remained calm 
and determined. The signal station made an outstanding contribu- 
tion to our operation and to the repulsion of the enemy by sending 
clear and important messages which proved essential in obtaining a 
clear picture of the over-all situation. Led by port oomraander 
W°.hn, the participating naval units set an example in holding their 
positions within the closest range of the enemy forces against far 
superior forces. None of the enemy vessels succeeded in penetrating 
into the Dieppe harbor. The harbor barrages are intact. The naval 
unite ashore lost 28 men killed, 25 wounded, and 2 missing. 

For copy of the detailed report see l/Skl 20638/42 Gkdos. in File 
"Enemy Landing at Dieppe 19 Aug.". Copies were sent simultaneously 
to the Fuehrer Headquarters, the Naval Representative on the Armed 
Foroes High Command Operations Staff, the Naval Liaison Officer to 
the Commander in Chief, Air Force, the Naval Liaison Officer to 
the Army High Command, and to all the higher Navy oommands. 

Furthermore, Group West reported the following fact which is es- 
sential to the estimate of the enemy situation and of the entire 
operation: The position and course of the 26 steamer oonvoy 
located off Portsmouth which seemed to be standing by with further 
strong landing forces aboard corresponded to those of a scheduled 
westbound Channel convoy previously located by radio intelligence 
and radar service. Later, the convoy proceeded to Portsmouth. 
Group West is of the opinion that it is still an open question 
whether there is any connection between this convoy and the landing 
at Dieppe. The Commanding Admiral, Submarines had ordered 3 out- 
bound submarines to head for the western outlet of the Channel, 



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CONFIDENTIAL 



31 Aug. 1942 



because it was expeoted that a large enemy transport fleet would 
be at sea, and a large-scale landing attempt would be made at some 
other point. The possibility of assigning further submarines in 
the harbor was under consideration. However, the orders to the 
submarines were revoked as soon as it became known that the oon- 
voy was entering Portsmouth and, approximately at the same time, 
it became apparent that the situation at Dieppe was under control. 

(3) Lt. Oomdiv Dr. Krantz has reported the results 
obtained so far from the questioning of enemy naval personnel in- 
volved in the landing attempt at Dieppe on 19 Aug. by the naval 
interrogation officer at headquarters of the 302nd Infantry Divi- 
sion in Envermeur. For copy of the telegram see l/Skl 28568/42 geh. 
in File "Enemy Landing at Dieppe on 19 Aug. 1942". 



III. North Sea. Norway. Arctic Ooean 

1. North Sea ; 

Enemy Situation : 

No noteworthy incidents occurred. 

Own Situation ; 

In the night of 20 Aug. enemy plane6 were active over 
the Dutch area and the German Bight. Aerial mines are assumed to 
have been dropped in quadrants AN 8332 and 8336. 

1 mine was swept by a mine sweeper off Borkum. 2 mine-sweeping 
planes removed 1 mine off Borkum and 1 off Wangeroog. 

Convoy operations proceeded as planned. 

2. Norway. Arctio Ocean ; 

Enemy Situation ; 

Radio intelligence intercepted a message from an unidenti- 
fied station to the Arctic Ocean Command stating that tanker no. 14 
is badly damaged and in need of tug assistance. 

Own Situation ; 

On 20 Aug. the Russian battery on the Rybachi Peninsula 
fired 130 rounds on our eastbound convoy without scoring any hits. 
Russian and British planes were observed oarrying out reconnaissance 
missions off the Arctic Coast. Convoy operations in the area of 
the Commanding Admiral, Norway proceeded according to plan. 

The Commanding Admiral, Norway has transmitted a report from the 
Naval Shore Commander, Kirkenes about the progress of the construc- 
tion of a cruiser berth with an anti-torpedo net in the Kjoe Fjord. 
According to this report, the berth is already available and the 
net is ready but has not been laid because the Air Force considers 



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% 



CONFIDENTIAL 
21 Aug. 1942 

it unnecessary in view of the existing georgraphical conditions. 
An alternate berth in Renoe Sound is likewise ready for use» (See 
Telegram 1530.) 

In view of the fact that the steamers GEORG L. M. RUSS and 
BOLTENHAGEN were torpedoed in the KriBtiansand South-Stavanger 
area, the Commanding Admiral, Norway suggests that 5 single-row 
anti-subnarine minefields be laid in order to protect the convoy 
route in that area. For copy of the proposal see l/Ski 20636/42 
Gkdos. in War Diary, Part C, Vol. Ila. 

The Naval Staff has transmitted its final conclusions concerning 
convoy PQ 18 to the Naval Representative on the Armed Forces High 
Command Operations Staff, the Naval Representative on the Air 
Force Operations Staff, and the Naval Liaison Officer at the Army ■ 
High Command, with copy to Group North. For copy of the telegram 
see l/Skl I op 20564/42 Gkdos. in File "Elspalaet". 

The Naval Staff has approved Group North's plan to have the 
"Knospe" expedition brought in by a submarine stationed in the 
Spitsbergen area or, if ice conditions make this impossible, to 
assign the weather ship COBURG to this mission. The Naval Staff 
directs Group North to have the COBURG lay the automatic weather 
reporting gear regardless, of whether the "Knospe" exoedition can 
be brought in by a submarine or not. (See Telegram 1717.) 

In connection with operation "Sunderland" . the Navel Staff has 
received a new version of the operations order by the Admiral, 
Arctic Ocean, containing the following changes in the previous 
order issued only in the form of a telegram (see War Diary, 15 
Aug.) : 

The task is to attack ship traffic in the Kara Sea. The main 
objectives of the attacks are convoys, preferably those coming 
from the east. 

Participating forces ; the SCHEER and presumably 2 submarines in 
the Kara Sea. Operations by other submarines, loosely connected 
with operation "Wonderland" , are planned off the Matochkin Shar, 
the Kara Strait, and the Yugor Strait. 

Strategic command : Admiral, Arctic Ocean. 

Taotioal command I the captain of the SCHEER. The submarines will 
be under the exclusive oommand of the Admiral, Arctic Ocean. The 
jump-off base will be in the Narvik area. 

The surprise factor is deoieive for the success of the operation. 
Strictest radio silence should be maintained and the ship must 
keep out of sight. Whether and to what extent the task can be 
carried out will depend on the situation and will be determined 
by the commander. No inflexible orders are being issued, with 
the single exception that only justifiable risks should be taken, 
(Same restrictions as for operation "Roes s el sprung". ) As soon 
as she is notioed by the enemy, the ship must turn away. 

For execution- and details see operations order in l/Skl 1629/42 
Gkdos. Chefs, in File "Wonderland". 



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CONFIDENTIAL 
21 Aug. 1942 

Situation concerning operation "Wunderland" ae of 21 Aug. 

No report has been received from the cruleer 80HEER. 
Submarine U "453" entered the Ice Fjord according to orders and 
found all the coal mines in that area as well as the radio towers 
in the Groen Fjord destroyed. The submarine destroyed the Linne 
radio station by gunfire. She considers it unlikely that any 
merohant or passenger steamers would approach the Ice Fjord. 

Submarine U "589" departed on her mission off the Matochkin 8har. 
She is to meet submarine U "456". 

Submarine U "251" is operating together with the SCHEER. She 
sighted a PT boat type subchaser at the fog boundary in quadrant 
AF 9783. 



IV. Skagerrak, Baltio Sea Entrances. Baltio Sea 

1. Enemy Situation ; 

No noteworthy reports have been received. 

2. Own Situation : 

* 

The routes In the entrances and the western part of the 
Baltio Sea were temporarily dosed because of the possible presence 
of aerial mines in these waters. 4 of the enemy planes which 
penetrated into the Reich on the night of 20 Aug. were shot down 
by naval anti-aircraft artillery in the area of Eckernfoerde and 
the Kiel Bay. The incursions reached as far as the East Prussian 
coast. A total of 6 British aerial mines were salvaged in the 
Ploener See and off Bordesholm, as well as in the vicinity of 
Aarhus. Shipping on the lakes has been banned. 1 British aerial 
mine probably exploded in the Strande Bay. 

The German motor ship HINRICH (90 GRT) sank with her entire crew 
in the Little Belt as a result of a mine hit. 

In order to counteract as far as possible the paralyzing effeot of 
the frequent closing of the routes east of Swinemuende on merohant 
shipping, the Naval Station, Baltic Sea suggested that 24 lighters 
or luggers from Holland or Hamburg be recruited to help speed up 
the clearing of the mined routes. The Naval Staff Quartermaster 
Division will take care of the matter. 

The LUETZOW reported that she is not ready for operations due to 
shipyard repairs. 

In the Gulf of Finland, a motor boat of the Coastal Patrol Flotilla 
Russia went down In flames caused by a misfire. Fog prevented the 
laying of minefield "Seehund II". Mine-sweeping and convoy opera- 
tions in the area of the Commander, Mine Sweepers, Baltic Sea pro- 
ceeded according to plan without incidents. 

Referring to the impending operation "Nordlicht", Group North re- 
newed its request for authorization of the transfer of at least 
several vessels of the 6th PT Boat Flotilla to the Gulf of Finland. 
The Naval Staff refused the request because the extremely oritioal 
situation in the west area requires the services of the flotilla 

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CONFIDENTIAL 



31 Aug. 1942 



there. ' The Naval Staff does not oonaider it very likely that the 
Russian fleet in the Baltic Sea will try to break out when opera- 
tion "Nordlioht" gets under way. On the contrary, previous ex- 
perience leads the Naval Staff to believe that the Russians will 
use the arms and crews from their ships to support the fighting 
on land. For this reason, the Naval Staff does not consider it 
justified to withdraw any of the foroes so badly needed in the 
west area for an assignment where they may not be needed and pre- 
fers to risk the disadvantage of having to send some of the foroes 
later for brief operations against a Russian breakthrough attempt. 



]L MfirnhaTTh Shipping 

In its Brief Report No. 26/42, the Naval Intelligence Divi- 
sion, Foreign Merchant Marine Branch supplies information on ore 
shipping in Lulea, ship traffic in the Strait of Gibraltar and the 
number of ships in the harbor, the arming of U.S. merchant vessels, 
the building of wooden ships in the U.S.A. , etc. 



VI. Submarine Warfare 

1 • Enemy Situation ; , 

Messages indicating lively reconnaissance activity in 
the northern rendezvous area and around Iceland were intercepted, 
one of them from a plane reporting a depth charge attack on a sub- 
marine 225 miles southeast of Reykjavik. 

Submarine sighting reports were intercepted from the St. Lawrence 
River, where there are no German submarines, northeast of Long 
Island, in the Cape Hatteras area, in the Florida Strait, and in 
the Windward Passage. A message from Freetown reported a submarine 
at 38° 50« S, 48° 53« W. 

2. Own Situation ; 

For submarine operations in the Arctic Ocean see Situa- 
tion Arctic Ocean. 

The NORTHUMBERLAND sunk by submarine U "510" (see War Diary 19 
Aug.) was the 11,558 GRT tanker of this name. This means an ad- 
ditional 10,300 GRT to this submarine's or edit. No further suc- 
cesses were reported today. For other reports see supplement to 
the submarine situation in War Diary, Part B, Vol. IV. 

T.ie Commanding Admiral, Submarines reported that an attack by 
enemy planes broke up the successful operation of the submarine 
group "Blueoher" as soon as the convoy came within the range of the 
planes. 4 of the 7 submarines participating in the operation were 
damaged by bombs, 1 of them heavily. Inoreased enemy air activity 
over the Nv/rth Atlantic extending as far as 25° W, together with 



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CONFIDENTIAL 
21 Aug. 1942 

the enemy's excellent location system, i»o.,e made submarine warfare 
extremely difficult, with the result that even if the strength of 
the enemy air forces remains at its present level, the number of 
our submarine successes is bound to decrease considerably, while 
our losses will be heavy. This will reduce the chances of our sub- 
marine offensive. In order to keep up these successes, the Com- 
manding Admiral, Submarines once again requests the immediate. as- 
signment of the most suitable planes to the Bay of Biscay and the 
eastern Atlantic; as far as range and fighting power are concerned, 
only He 177' s would be suited for the task. (See Telegram 2040.) 

The Chief, Naval 8taff will personally inform the 
Fuehrer about this situation when delivering hie 
report on 26 Aug. The Naval Staff is keeping the 
Air Force Operations 8taff informed on the matter. 

In view of the fact that the blockade runners have re-entered port, 
the Naval Staff authorizes submarines to attack enemy ships on 
route "Anton" north of 20° N beginning at 0000 on 22 Aug. until 
further notice. A directive to this effect was sent to the Com- 
manding Admiral, Submarines and Group West via Telegram 1718. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

During the day our planes flew reconnaissance missions 
and carried out a fighter-bomber attack on Hythe. No missions were 
flown at night. 

2. Mediterranean Theater ; 

Reconnaissance over the western Mediterranean failed to 
yield any results. 

In the vicinity of Corfu, a German escort plane scored a bomb hit 
on an enemy submarine operating against an Italian tanker whioh 
had been torpedoed by a plane. The submarine sank after a heavy 
explosion. A destroyer escorting a convoy shot down 2 planes. 
During the photographic reconnaissanoe of Haifa, Suez, etc., very 
strong anti-aircraft fire was observed reaching an altitude of 
11,500 meters, and a Spitfire was seen flying at an altitude of 
12,000 meters. 

3. Eastern Front ; 

Reoonnaissance planes were active over the Black Sea, 
the Volga River, and the Arotic Ocean. The Murraashi airfield was 
raided with observed effect. 14 enemy planes were shot down. 1 
300-ton steamer was sunk in Eina Bay. 



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CONFIDENTIAL 
31 Aug. 1942 

VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation. Mediterranean : 

No further reports have been reoeived about the foroe 
which departed from Gibraltar in the night of 19 Aug. The German 
Naval Command, Italy does not think that a new British operation 
is in progress at present. At noon an Italian plane sighted 1 
destroyer and 3 torpedo boats on a northeasterly course off the 
northwest coast of Mallorca. According to an intelligence report 
from Spain, a force consisting of 8 vessels and a large ship look- 
ing like an escort vessel were sighted on an easterly course off ( 
Cape de Gata on the night of 30 Aug. However, visibility was poor. 

Submarines were reported sighted off Capri, in the Strait of 
Otranto, off Corfu, and off the northwestern tip of Crete. The 
ships in Valletta had been increased by 2 submarines. No reports 
have been received about the eastern Mediterranean. 

3. Own Situation. Mediterranean : 

The German Armistice Commission, France reports that the 
Frenoh have alerted Marseille and Toulon beoause of the departure 
of the British fleet from Gibraltar reported the day before. The 
increased readiness ordered for the 3rd PT Boat Flotilla in Suda 
was cancelled. 

In the night of 30 Aug. enemy planes unsuccessfully attacked the 
convoy of the steamer DORA and the tanker POZARICA off Cape Stilo.- 
Our escort planes shot down 6 of the attackers. During renewed 
air attacks at 1630 on 21 Aug. directly south of Corfu an aerial 
torpedo hit the tanker POZARICA. The ship is being towed into 
Corfu. One of our planes is reported to have sunk an enemy sub- 
marine on that occasion. 

3. Transport of Supplies to North Africa : 

During the day enemy planes repeatedly attacked the con- 
voy of the SPORTIVO en route from Tobruk to Suda without scoring 
a hit. Transport of supplies from Italy and Greece to North Afrioa 
and along the North African coast proceeded according to plan. 

On 19 Aug. 770 tons were unloaded in Tobruk. 

1 landing barge burned up during the bomber raid in the night of 
19 Aug. 

4. Area Naval Group South : 
Aegean Sea : 

No noteworthy incidents occurred. 

Black Sea : 

Enemy Situation ! 

Air reconnaiseanoe reported that 3 steamers and 15 boats 
were in Novorossisk early in the morning. 3 small warships entered 



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CONFIDENTIAL 



31 Aug. 1942 



and 1 PT boat left the port. On the Volga River 1 tanker and 17 
towe were observed sailing up the river, while 9 tows were moving 
downstream. 

Own Situation : 

On the evening of 20 Aug. 4 Italian subchasers departed 
from Feodosiya in order to feint a landing on the southern coast 
of the Taman Peninsula. 

In the night of 20 Aug. the 1st PT Boat Flotilla failed to en- 
counter any ships moving south of Tuapse. The PT boats re-entered 
Ivanbaba after an exchange of fire with 2 Russian flying boats. 

It was oonfirmed that the harbor of Akhtari oan not be considered 
for the transport of supplies by sea even if small vessels are 
used. 

Special Items : 

(1) In order to carry out the convoy and transport 
operations in the Caspian 8ea, Group South suggests that in ad- 
dition to the transfer of Italian subchasers and submarines, as 
well as- of 20 motor boats from the Sea of Azov, scheduled for the 
first half of the ooming winter, at least 20 landing barges be 
built right in the Caspian Sea area. Moreover, the number of the 
Siebel ferries which the Army is supposed to hand over to the Navy 
should be increased to 20, and the new ferries should likewise be 
built on the spot, if the engine problem oan be solved. Further- 
more, the Group proposes that a naval supply depot in Makhach Kala 
be established to meet any eventuality. (See Telegram 1200.) 

The Naval Staff Quartermaster Division will take up the matter. 

(2) In view of the shortage of available naval vessels, 
Group 8outh again asked for authorization to keep 2 of the stipu- 
lated 4 reserve boats of the 1st PT Boat Flotilla on permanent 
duty and for assignment of the additional crews required for man- 
ning these 2 PT boats. (See Telegram 1800.) 



IX. Situation East Asia 

No noteworthy reports have been reoeived. 



1*. 



Armv Situation 

1. Rub b i an Front : 

Army Group A : 

Enemy resistance against the Army Group units whioh are 
advancing according to plan has on the whole stiffened, and the 
speed of our advance has been slowed down. 



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CONFIDENTIAL 
21 Aug. 1943 

Army Group B : 

The right wing of Army Group B is slowly pressing from 
the south and southeast against the area south of Stalingrad in 
the face of strong enemy resistance. The northern pincers pushed 
ahead toward the southeast as far as Poskovatka. On the other 
sectors of the front our troops repulsed all enemy attempts to 
cross the Don River. The situation on the sector of an Italian 
division at the point where the Khoper River flows into the Don 
is unclarified. 

Central Army Group : 

Fighting continues in the area south of Sukhinichi. Our 
troops broke through the western wing of the enemy forces on the 
Zhizdra River. East of Rzhev, the enemy is pressing hard against 
our forces, some of which had to be withdrawn behind the Volga 
River. Otherwise all enemy attacks were repulsed. 

Northern Army Group : 

All attacks against the land bridge to the II Army Corps 
were beaten off. Elsewhere the enemy made some local advances 
which are of no special significance. 

2. Finnish Front : 

No noteworthy Incidents occurred. 

4 

3. North Africa : 

German and Italian engineers laid 144,000 mines in the 
Alamein position. 



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CONFIDENTIAL 
22 Aug. 1942 

Items of Political Importance 

The Moscow conferences continue to be discussed at great length in the 
international press. Among the numerous conjectures, th£ one offered 
by a Swedish paper comes nearest the truth in concluding - : that Churchill 
could have spared himself the trip if the Allies were determined to 
open the second front now. If, on the other hand, Churchill succeeded 
in strengthening Russia's determination to resist despite the absence 
of a second front, as all the signs indicate, then his trip was of 
greatest value for the Allied cause. It is frequently pointed out that 
the mere fact that Churchill, who is now seventy, went to Moscow clear- 
ly demonstrates the extreme seriousness of the situation. 

Concerning the shipping problem , 

Lord Winston declared in a speech that Britain's ship tonnage situa- 
tion is disastrous. Not before the British regain their naval suprem- 
acy, will the land warfare produce any noteworthy successes. Unless 
they are able to do so, they will continue to suffer one defeat after 
another. 

Iran: 



The Transocean News Agency reports that for the first time U.S. troops, 
which landed in Basra, were garrisoned on Iranian territory. According 
to the same source, the Russian Government attempted to negotiate the 
transfer of Iranian vessels stationed in the Caspian Sea to Russian 
ownership. 

Brazil ; 

According to a press report from Rio de Janeiro, Brazil is apparently 
beginning to prepare for active participation in the war. 



Special Items ; 

The Naval Staff had asked the Naval Ordnance Division, War Economy 
Branch to find out whether Ukrainian ore could under the present 
circumstances be used to offset any interruptions in Swedish ore im- 
ports. On the basis of information received from, the Minister for the 
Occupied EastemTerritories, the Eastern Mining Corporation (Berg-und 
Huettenwerksgesellschaft Ost m. b. H. ) and the Armed Forces High Com- 
mand, War Economy Division, Foreign Economics Branch, the Naval Ord- 
nance Division, War Economy Branch stated that it will be absolutely 
impossible to dispense with the Swedish ore shipments within the 
foreseeable future. 



Situation 22 Aug;. 19 42 
I. War in Foreign Waters 
1. Enemy Situation ; 

North Atlantic : 

The convoy heading for the British Isles which was sighted 

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CONFIDENTIAL 
22 Aug. 1942 

off the Portuguese coast on 11 Aug. was escorted by 1 ship of the 
ILLUSTRIOUS class, 1 heavy cruiser, and 1 light cruiser. 0h ; 30 
and 31 Jul. a large convoy arrived from the U.S.A. in Northern Ire- 
land. According to an agent report, -there are at present no U.S. 
battleships in Europe. However, a U.S. naval officer said that the 
NEVADA will arrive in the British Isles with the next troop con- 
voy. One particularly large convoy was expected to depart from 
Sierra Leone to England between 18 and 20 Aug. 

The Consulate in Lourenco Marques reports that during the last few 
days 2 convoys .carrying troop3 and planes for Australia passed >* 
through Cape Town. On 8 Aug. a U.S. convoy of 6 ships carrying 
planes for* Egypt passed through Lourenco Marques. Japanese sub- 
marines recently sank 1 Greek and 2 British steamers in the Mozam- 
bique Strait. 

i 

2. Own Situation : 

The steamer DRESDEN departed from Yokohama to Saigon where 
she will take on cargo for Europe. 

All vessels in foreign waters were notified via Radiogram 2022 that, 
starting immediately, submarines arg permitted to fire on unescorted 
and unaccompanied vessels between and 10 S west of 20° W. Upon 
inquiry, the Naval Attache in Tokyo is being informed that the 
mines and torpedoes left on the DOGGERBANK, which are to be brought 
back to Europe when the ship returns, may be shown to the Japanese 
Navy. (See Telegram 0330.) ' 



II. Situation West Area 

1 . Enemy Situation : 

Air reconnaissance reported 40 to 50 landing boats and 1 
British warship off Selcombe. At«noon 20 steamers and 1 destr6yer 
were sighted on an easterly course east of Start Point. 

2. Own Situation ; 

Atlantic Coast ; 

While sweeping a mine off St. Nazaire, the mine-de'tonating 
vessel "137" was badly damaged. 

The blockade -runner YJESERLAND returned without an incident and 
anchored at Bordeaux. 

Channel Coast r 

On 21 Aug. 1 three-engine tank' landing craft and 2 two- 
engine Infantry landing craft were salvaged and towed into Dieppe. 

-26p- 



CONFIDENTIAL 
22 Aug. 1942 

In the night of 20 Aug. naval anti-aircraft guns shot down a four- 
engine enemy plane. 



III. North Sea. Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

Air reconnaissance reported the usual convoy movements 
along the southeastern and eastern coasts. There was little recon- 
naissance activity over the entire North Sea area. 

Own Situation : 

Mine-sweeping planes and motor mine sweepers removed a 
total of 5 ground mines off Borkum, 2 off Terschelling, 2 off 
Schiermonnikoog, and 2 off the Elbe estuary. Mine operation "Eleanor" 
was carried out according to plan. Operation "Fuenfte Kolonne" 
is scheduled for 23 Aug. 

In the area of the Coastal Defense Commander, German Bight enemy 
balloons appeared for the first time which dropped phosphorus-filled 
rubber cylinders. 

2. Norway. Arctic Ocean ; 

Enemy Situation : 

According to radio decoding of the British Admiralty re- 
port of 31 May, out of the 34 ships constituting the PQ convoy, 7 
or a total of 43,205 GRT, were sunk, 6 of them by planes and 1 by a 
submarine • .. 

The last convoy attacked prior to that date was the 
PQ 16. The successes reported by , our Air Force far 
exceeded this total. (See War Diary 26 May and the 
following days.) On the other hand, the successes 
scored by our forces against convoy F0. 15 coincide 
more or less with these Admiralty figures. (See War 
Diary 4 May.) 

According to an intelligence report from Iceland of 15 Aug., a convoy 
consisting of 11 to 12 loaded and armed ships arrived in Reykjavik 
on 14 Aug. U.S. soldiers are frequently used as stevedores, replac- 
ing the Icelandic workers who are on strike. Air reconnaissance lo- 
cated a northbound convoy consisting of 24 ships in the Aberdeen 
area. About 10 coastal vessels were proceeding on a westerly course 
in the Motovski Bay between the Litsa and Ura Bays. Pack-ice was 
spotted in the Horn Sound, while the Bell Sound and the Ice Fjord 
were free of ice, and isolated drift-ice fields were observed off 
the west coast of Spitsbergen. 



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CONFIDENTIAL 
22 Aug. 1942 

Own Situation ; 

On 21 Aug. at noon 2 Russian planes strafed and unsuccess- 
fully tried to torpedo subchaser "1103" off Svaerholt. No other in- 
cidents were reported from the area of the Conmanding Admiral, Nor- 
way. 

The Admiral, Arctic Ocean reports that operation "Wunderland" is pro- 
ceeding according to plan, bn 18 Aug. at 0130 the cruiser SCHEER 
eluded an unaccompanied ship at 77° N, 35° E. It is not known whether 
the message to this effect was issued by the SCHEER or by a sub- 
marine. The short signal also failed to make clear whether the ship 
noticed the SCHEER or not. Group North remarks that the message was 
issued very late, but it does not expect any adverse effect on the 
execution of the operation. 

Acting on the request of the Admiral, Arctic Ocean, Group North has 
given permission for mine operations "Peter" and "Paul" to be carried 
out. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1« Enemy Situation : 

During the afternoon 3 destroyers were located in the Kron- 
stadt roadstead. 

4 

Small auxiliary vessels were observed moving within the island area 
In the eastern part of the Gulf of Finland. 

2. Own Situation ; , 

No incidents of importance occurred in the area of the 
Commanding Admiral, Defenses, Baltic Sea. According to a report of 
the Naval Attache in Stockholm, the Swedish Government has announced 
that a certain area has been mined and issued a warning to the ships. 
For details see Telegram 1817. 

Following an encounter with 7 enemy patrol vessels and 2 ?? boats, 
operation "Seehund II" in the area of the Commander, Mine Sweepers, 
Baltic Sea had to be broken off. 

On 21 and 22 Aug. enemy dive bombers attacked our subchaser groups 
west of the "Seeigel" minefield. 2 of the boats suffered casualties. 

Mine-sweeping and convoy operations proceeded according to plan with- 
out incidents. 



V. Submarine Warfare 

1. Enemy Situation ; 

According to an intelligence report from England, a reliable 
agent maintains that repeated or continued submarine attacks on con- 
voys proceeding to England via the Atlantic Ocean will immediately re- 
sult in further precautionary cuts in the British food rations and a 

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CONFIDENTIAL 
22 Aug. 1942 

shortage of raw materials which will lead, in turn, to a drop in 
production. Shipping circles are very much concerned about the re- 
cent submarine attacks on England-bound ships in the Atlantic Ocean, 
since these attacks make it difficult or even impossible to pull 
out a considerable number of medium and small-sized ships and to 
keep them ready in the southern ports of England, for which pre- 
liminary arrangements were already made. This reserve, which is in 
fact an assembly of transports for the second front, will have to 
be broken up if the attacks in the North Atlantic continue. 

2. Own Situation : 

Submarine U "354" has been sent to bring in the weather 
expedition "Knospe" from Cross Bay. 

In the North Atlantic, submarine U "135" of the "Loss" group located 
a westbound convoy in quadrant AK 9693. All boats "of the group 
were sent into action against the convoy. 

The "Kirschbluete" left Lorient on 22 Aug. No successes have been 
reported from the submarine operations areas. In the Mediterranean, 
submarine U "565" was forced to turn back because of heavy bomb 
damage . 

For further details see supplement to the submarine situation in War 
Diary Part B, Vol. IV. 

3. Special Items ; 

(1) The Naval Staff has released until further notice the 
area between 0° and 10° S extending in westerly direction as far as 
the coast for submarine operations. The eastern boundary lies, as 
before, at 20o W. 

(2) The declaration of war by Brazil has had an extremely 
unfavorable effect on Chile and Argentina. It is therefore quite 
possible that these countries v/ill be forced to break off their re- 
lations v/ith or to declare war on Germany. For this reason, the Com- 
manding Admiral, Submarines has been directed to make sure that no 
incidents "occur which would involve Argentine or Chilean vessels and 
that instructions to this effect be carefully observed. Submarine 

U "507" which is stationed off the Brazilian coast should be ordered 
to report on the circumstances under which the Brazilian ships were 
sunk. 



VI. Aerial Warfare 



1. British Isles and Vicinity ; 



' During the day reconnaissance missions were carried out 
and landing vessels, as well as the town of Selcombe, were attacked 
by fighter-bombers. In the night of 22 Aug. a few planes raided 



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CONFIDENTIAL 
22 Aug. 1942 

Great Yarmouth, Grimsby, and other localities, after failing to 
reach the main targets, namely, Cambridge and Boston. Enemy planes 
flew in small numbers over the occupied territories during the day 
and at night. No incursions were made into Reich territory,, 

., 2. Mediterranean Theater : 

Convoy escort and reconnaissance missions were carried 
out over the Mediterranean.- 4 planes were shot down. 

3. Eastern Front : 

2,141 missions were flown on 22 Aug. 122 enemy planes 
were shot down, 3 of our planes were lost, and 3 enemy planes were 
destroyed on the ground. Reconnaissance flights were carried out 
over the Caspian Sea. In the Arctic Ocean, the Valamovo airfield 
was again raided v/ith observed effect. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

According to an intelligence report from Spain, the FIJI- 
class cruiser still at Gibraltar is the NIGERIA. The other FIJI- 
class cruiser which departed with the aircraft carrier force' is 
said to be the KENYA. The carrier force has not been sighted in 
the Mediterranean, which seems to prove definitely that it left for 
the Atlantic. 

Otherwise there was nothing to report. 

2. Own Situation, Mediterranean : 

1 German plane sighted 1 apparently damaged enemy sub- 
marine escorted by a fighter 12 miles west of Lampione Island. "The 
tanker POZARICA which had been damaged by an aerial torpedo hit on 
21 Aug. was brought into the roadstead of Corfu where the tanker 
JSAN ANDRES will take over her fuel supply. During the attack on the 
POZARICA, the escort vessels were strafed by enemy planes and 
suffered rather heavy casualties. Enemy submarines unsuccessfully 
attacked 1 Italian landing craft en route to Gaeta north of Ischia. 
The Italian torpedo boat CANTORE sank 7 miles off Ra3 el Tin as a 
result of a mine hit while escorting the steamer PETRARCA from 
Benghazi to Tobruk. 

3. Transport of Supplies to North Africa : 

Transport of supplies from Italy and Greece to North 
Africa proceeded as planned. 

4. Area Naval Group South : 

• Aegean Sea : 

On the evening of 21 Aug. enemy planes attacked the 
Castelli airfield. Convoy operations proceeded as planned. 

Destroyer ZG "3* has been named HERMES. 



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CONFIDENTIAL 
22 Aug. 19 42 

Black Sea ; 

Enemy Situation : 

Nothing to report. 

Own Situation : 

On 20 Aug. our artillery set afire the German 200-ton 
steamer which had run aground south of Cossa Chushka on 19 Aug., 
although the steamer gave recognition signals. During the feinted 
landing on the south coast of the Taman Peninsula, carried out with 
Italian subchasers in the night of 20 Aug., the Russians defended 
themselves by opening fire from land-based batteries and machine 
guns with the aid of searchlights. The subchasers re-entered 
Feodosiya without having suffered any losses. 

The operation which 3 Italian subchasers were to carry out against 
enemy ship traffic off Novorossisk in the night of 21 Aug. had to 
be broken off because one of the boats was unable to participate. 

The Rumanian submarine DELFINUL which departed for her first opera- 
tion after a long repair period in the shipyard on 21 Aug. was 
forced to return to Constanta because of some technical failure. 

On 20 and 21 Aug., the transport of supplies in the Sea of Azov 
from Mariupol and Taganrog to Azov was carried out with 2 landing 
craft, 7 Air Force Siebel ferries, a number of lighters, and 1 
engineers pontoon. Since the mine-sweeping plane which was 
promised for 18 Aug. has not yet arrived in Mariupol, the port 
commander of Mariupol has assigned an Air Force Siebel ferry to 
sweep the routes. The route between Yeisk and Mariupol will be 
swept by 7 wooden boats. 

Special Items : 

(1) The Army General Staff sent the following telegram to Army 
Group A, with copies to the Admiral, Black Sea, the Naval Shore 
Commander, Ukraine, and the 4th Air Force: 

"In support of measures taken by Army Group A, it is confirmed 
that according to the Fuehrer's decision Army Group A is to ex- 
ercise exclusive control over the use of ship tonnage in the Sea 
of Azov and on the Don River for tactical as well as for supply 
tasks • 

"It is essential to get shipping moving immediately, utilizing as 
much as possible of the tonnage available. The Navy is supposed 
to meet demands made in this connection to the limit of their 
ability." 

Since the Air Force is not under the command of Army Group A in the 
Sea of Azov area, the problem of shipping tonnage for the require- 
ments of the Air Force is still to be settled. 

(2) The Naval Staff Operations Division is unable to support the 
request of Group South for allocation of reserve vessels to the 
1st PT Boat Flotilla unless it is possible to make 2 more crews 



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CONFIDENTIAL 



22 Aug. 1942 



available for the 6th PT Boat Flotilla without resorting to the 
flotillas operating in the Channel. The Fleet Branch of the Na- 
val Staff Quartermaster Division and the Recruitment Division 
of the General Administration Bureau have been notified accord- 
ingly. 

(3) "Grdup South reports that in view of the heavy fighting at 
Stalingrad the IV Air Corps has been temporarily withdrawn from 
the Crimea. This means that operation "Bluecher" will have to be 
postponed for at least 5 days. It may even have to be delayed 
until early September. 



VIII. Situation East Asia 

According to a U.S. communique, American forces have carried 
out a raid on Ma kin Island north of the formerly British-owned 
Gilbert Islands, during which the Japanese seaplane base was de- 
stroyed along with 2 seaplanes, and 1 Japanese transport and 1 
gunboat were sunk by U.S. fleet vessels. The Japanese Headquarters 
reports that a landing attempted by about 200 Americans on 17 Aug. 
was completely repulsed despite their numerical superiority. 

According to Anglo-American press reports, U.S. forces in the Solo- 
mon Islands have completed the conquest of the islands Tulagi, 
Guadalcanal, and Florida. They also gained footholds on 3 more 
islands situated farther to the west. The Japanese are expected 
to counterattack. Further reports state that British and Indian 
troops penetrated into the Japanese-occupied territory of Burma 
and remained there for 3 weeks to destroy installations and to take 
prisoners. 



IX. Army Situation 

1 . Russian Front : 

Army Group A : 

South of the Kuban River, the offensive of the V Army 
Corps divisions is slowly making headway in southwesterly direction 
toward Novorossisk. South of Maikop, our riflemen are engaged in 
a battle with enemy forces north of the Byeloryechensky Pass. 

On 21 Aug. a mountain detachment hoisted the German war flag on the 
peak of the Elbrus Mountain. West of Mai sky, the enemy made a heavy 
attack on our bridgehead over the Urvana River. Our forces have 
been assembled near Baksan and Edisia for an attack in southeasterly 
direction scheduled for 23 Aug. The LII Army Corps is advancing 
toward the southeast through a territory which for the time being 
Is still free of enemy forces. 



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CONFIDENTIAL 



22 Aug. 1942 



Army Group B ; 

The 6th Army is carrying out its flanking attack on 

Stalingrad against stiff enemy resistance. On the northern 

front of the Don position, our troops have to repulse repeated 
enemy attempts to cross the river. 

Central Army Group ; 

The enemy has launched an offensive against the entire 
front of our attacking forces in the Sukhinichi area. Except for 
a few penetrations, the attack was repulsed. This puts an end to 
our attack plan in this area. Southeast and east of Rzhev, superior 
enemy troops forced us to yield the bridgehead over the Volga River, 
blow up the bridge, and withdraw our positions. Our situation is 
extremely critical. 

Northern Army Group : 

Local enemy attacks were reported, 

2. Finnish Front s 

No noteworthy reports have been received. 

3. North Africa : 

Air reconnaissance reported that the enemy forces v/ere 
apparently being regrouped and that a new division has been brought 
up. Otherwise enemy reconnaissance was very active, artillery 
activity was as usual, and there was little air activity. 



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CONFIDENTIAL 

23 Aug. lQl+2 
Sunday 

Items of Political Importance 

Braz.il t 

On 22 Aug. the Brazilian Foreign Ministry declared war on 
Germany and Italy. 

No. declaration of war on Japan has been issued by Brazil. Accord- 
ing*^ British press and radio reports, the Foreign Minister of 
Uruguay stated that Uruguay will follow the example of Brazil. 

In a note to the German and Italian governments, the Brazilian 
Foreign Minister summarized Brazil *s attitude toward the Axis 
powers up to the present time In 9 points and pointed out the 
reasons which led to the declaration of war. According to 
this statement, the 5 recent sinkings by torpedo attacks con- 
stituted a flagrant violation of International law and of human- 
itarian principles and were warlike acts which were bound to 
result in a declaration of war. For a detailed report see 
Political Review No. 197, Paragraph 1. 

Reuter reports that universal mobilization Is Impending In Brazil. 
The Brazilian fleet is said to be already at sea. 

President Vargas said In a speech that In the future all Brazilian 
convoys will be protected by the Fleet and the Air Force In close 
cooperation with the U.S. Air Force. 

Portugal ; 

The Transocean News Agency reports that Brazil's entry Into 
the war has caused consternation in Lisbon. President Carmona 
has assured the President and the people of Brazil of his own 
and Portugal's brotherly feelings for that oountry on the occasion 
of Brazil's entry info the war. 

Finland ; 

Minister Tanner stated in a speech that Finland will not accept 
any separate peace overtures. As a result of past disillusionment, 
the country has no longer any confidence In the peace offers 
which are being presented to it. 

Great Britain ; 

Air Minister Sinclair declared that Britain will relentlessly 
carry on her air attacks on Germany. The Germans may again send 
their bombers against England when the weather changes in 
Russia. Dieppe was the scene of the heaviest fighting In the 
air that has ever 'occurred on any of the fronts. Within 2k hours 
far more than 3,000 single attacks were carried out. Britain 
is now faced with a new crisis. 

The London Times expects a new German offensive in Egypt within 
the next few days. The German parachute troops which have been 
transferred from Crete to North Africa are expected to be em- 
ployed in this operation. 

India ; 

The Indian party "Hindu Mahsabha" has rejected the Pakistan plan. 

-277- 



CONFIDENTIAL 
23 Aug. 191+2 

U.S.A. : 

Willkle is leaving for Turkey and the Near East. American press 
reports attribute to this trip a greater importance than to any 
similar mission of earlier special envoys of President Roosevelt, 
At the present moment everything hinges on the future of Russia. 
Should Russia fall, special attention must be devoted to Turkey 
so as to prevent the Germans from getting hold of the entire 
Middle East up to the Indian frontier and cutting the British 
Empire in two. 

The Brazilian Ambassador in Washington declared that his Govern- 
ment will technically maintain its neutrality toward Japan. 



Special Items ; 

At 1910 the Armed Forces High Command Operations Staff authorized 
the enforcement against Brazil and Uruguay of all war measures 
similar to those in force against the other enemy countries. 

The Naval Staff informed Group West and the Commanding Admiral, 
Submarines of this step. 

Nothing is known at the Naval Staff about a declar- 
ation of war by Uruguay. Evidently the Armed 
Forces High Command has more recent news about the 
matter. 

Since the Navy might eventually be held responsible for Brazil's 
entry into the war, the Naval Staff wants to state the following 
facts : 

1. Foreseeing that the unintentional sinking of neutral 
South American ships due to their inadequate marking must result 
in political difficulties and, eventually, cause more countries 
to enter the war, the Naval Staff suggested to the Foreign Office 
on 10 Jan. I9I4.2 that notes be sent to the neutral seafaring nations 
stating that the present expansion of the war has prompted the 
Reich Government to ask the respective neutral government to have 
its ships properly marked so that any confusion with enemy 
vessels and the resulting incidents can be avoided. Aware of 

the importance of such a notification, the Naval Staff again 
requested the Foreign Office on 31 Jan. 19^2 to send out the notes 
as soon as possible. However, the Foreign Office was willing 
to notify only Argentina and Chile. Telegrams to this effect 
were sent on 10 Feb. I9I4.2. The Foreign Office took the stand 
that those South American oountries which had broken oi f their 
relations with us should not be notified and that the German 
position concerning the marking of ships was often enough discussed 
in the press. The Naval Staff nevertheless suggested a new press 
release to this effect. As far as is known here, no such 
announcement was made. 

2. In the beginning, immediate use of arms against Brazilian 
merchant ships was permitted only when they were escorted by enemy 
ships, were sending radio or other messages in violation of the 
regulations governing the right of prize, or were sailing with 
their lights dimmed and could not be Identified as Brazilian 

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CONFIDENTIAL 
23 Aug. I9I4.2 

vessels. Later incidents in which Brazilian ships were involved 
prove that the behavior of our submarines was at all times beyond 
reproach. 

3. As soon as the Brazilians began to paint their ships 
for camouflage purposes and to arm them , pe rmi s s i on to attack at 
once any South American ship recognize d as armed was granted 
our forces on 15 May I9U2. 

]+. Subsequent to the air attacks on Axis submarines off 
the Brazilian coast and the official announcement by the Brazilian 
Air Ministry that the attacks were made by Brazilian planes, the 
Naval Staff asked the Armed Forces High Command Operations Staff 
on. 29 May I9I4.2 to authorize the use of arms against Brazilian 
naval forces and merchant ships, In accordance with the Fuehrer's 
statement that If worst comes to worst no halfway measures should 
be used, a large-scale operation was planned, but the plan was 
dropped for political reasons. At the same time, the Armed 
Forces High Command Operations Staff issued new regulations for 
the use of arms against Brazilian ships on 1 Jun. 19l42. The 
Foreign Office, which had agreed to these measures as ordered, • 
was fully aware that they would in time lead to a state of war 
with Brazil. Ambassador Rit ter confirmed this over the tele- 
phone as recently as 2 days ago. 

5» After the sinking of 5 (five) steamers outside the 
Brazilian territorial waters on 16 and 17 Aug. I9I+2, the Foreign 
Office asked that our forces refrain from operating against 
Brazilian coastal traffic and keep at a distance of about 30 
(thirty) miles from the coast. Instructions to this effect 
were duly issued. 

This statement was made known to the Permanent Representative of 
the Commander in Chief, Navy at the Fuehrer Headquarters and to 
the Naval Representative on the Armed Forces High Command 
Operations Staff so that they are prepared for any eventuality. 
For copy see Telegram l/Skl I c 20761j./l|.2 Gkdos. In War Diary, . 
Part C, Vol. IV. 



Situation 23 Aug. 19)42 

I. War in Foreign Waters 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation ; 

No reports have been received from our vessels in 
foreign' waters. 

All vessels in foreign waters were informed via Radiogram OI3I4. 
that we are now in a state of war with Brazil. 

Information on the enemy situation was sent out via Radiogram 
0652. 



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CONFIDENTIAL 
23 Aug. 19U2 

II. Situation West Area 

1* Enemy Situation ; 

In the evening air reconnaissance spotted 6 destroyers 
on a southeasterly course and one on a -westerly course west of 
Beachy Head. In the morning 20 to 25 steamers with 6 patrol 
vessels were proceeding on a southwesterly course off Eastborough. 

2. Own Situation ; 

Atlantic Coast ; 

The ban on ship traffic in the Gironde was lifted. 

Channel Coast ; 

So far, 2 transports and 5 assault boats which partici- 
pated in the enemy operation of 19 Aug. have been brought into 
Dieppe. Our coastal batteries fired several rounds on ships 
located east of Folkestone between 0019 and 0100 without observing 
the effect. 

Mine operation "Klara" is scheduled to be carried out in the 
night of 25 Aug. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

Air reconnaissance spotted 2 northbound convoys of 50 
and 25 steamers east of Great Yarmouth. 35 northbound steamers 
were located off the Humber estuary and 5 southbound steamers 
were located off Flamborough Head. 

Own Situation ; 

Mine operation "Eleanor" was carried out in the night 
of 22 Aug. as planned. 

Mine sweeper M "3230" sank off Flushing in quadrant AN 8763 
after hitting a ground mine. The entire crew was rescued, 
including a number of wounded. Convoy and patrol operations in 
the area of the Commanding Admiral, Defenses, North proceeded 
according to plan. 

In the course of daylight incursions of enemy planes into the 
Dutch area and the German Bight, 17 demolition bombs were dropped 
on Emden, beginning at I309. 8 of the bombs fell on the Nord- 
seewerke . The raid caused minor property damage. 

2. Norway, Arctic Ocean ; 

Enemy Situation ; 

5 steamers and 2 corvettes were sighted on a 2l|.0 o 
course south of Iceland. 

-280- 



CONFIDENTIAL 
23 Aug. 19^2 

Own Situation ; 

At O355 a plane presumed to "be a British seaplane landed 
I4. men near Sommaroe on Langoe. One of them was shot, the 3 others 
are being searched for. Rubber rafts together with their contents 
were seized. 

-Th» Commanding Admiral, Norway has granted the request of the 
Admiral, Vilest Norwegian Coast for removal of 8 to 10 anti-sub- 
marine mines type B from the anti-submarine minefield located 
on the northern side of the Westby Fjord, 20 that the cruiser 
KOENIGSBERG which has been raised keel up can be towed through 
to a bay with a sand bottom where she will be turned right side 
up. 

The weather expedition "Holzauge" has started. 

The Admiral, Arctic Ocean informed the naval forces participating 
in operation "Wunderland" via radiogram about the convoy en 
route from eastern to western Siberia, which is presumed to con- 
sist of I), icebreakers and 19 ships according to the report of the 
Naval Staff Intelligence Division to Group North. 

Referring to this convoy, Group North suggests that operation 
"Wunderland" be extended, and recommends the assignment of the 
submarines to patrol duty in the east to southeast part of the 
area. . 

This step is completely in accord with the views 
of the Naval Staff which welcomes as especially 
gratifying the present energetic response of the 
Group with regard to the Siberian convoy. 

As suggested, the Admiral, Arctic Ocean extended the operation 
in order to intercept the convoy. On the other hand, the thrust 
into the Kara Sea will not be carried out for the time being. 

Submarine U "355" left quadrant AB 3855 to return to Narvik. 

Group North has agreed to the proposal of the Admiral, Arctic 
Ocean suggesting that mine operation "Zar" be executed while 
operation "Wunderland" is still in progress or directly there- 
after. On the other hand, Group North does not consider it 
desirable to lay parts of the minefields closer together, as 
suggested by the Admiral, Arctic Ocean. 

Group North does not agree to the replacement of the KOELN by 
2 or 3 more destroyers for carrying out operation "Rasputin", 
as proposed by the Admiral, Arctic Ocean. It insists, instead, 
on employing the KOELN so that as many mines can be laid as 
possible. Group North realizes that in case of bad weather 
the operation may have to be broken off and undertaken anew 
with destroyers. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 
1. , Enemy Situation : 

No noteworthy reports have been received, 

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CONFIDENTIAL 
23 Aug. 19i42 

2. Own Situation : 

In connection with the loss of the WURI, the Commanding 
Admiral, Defenses, Baltic Sea reports that the explosion occurred 
exactly on the prescribed route, and that consequently the captalr 
of the ship cannot be blamed for any navigational error. The 
Commanding Admiral, Defenses, Baltic Sea assumes that the mines 
were British aerial mines with period delay mechanism or aooustlc 
mines. Steps have been taken to salvage the cargo. Attempts are 
also being made to salvage the ship. For details see Telegram 

1715. 

Mine operation "Seehund I" in the Gulf of Finland has been 
completed. In the course of the operation, motor mine sweeper 
R "72" probably ran into the "Seeigel" minefield. The hull of 
the vessel is undamaged but the engine is not working. Convoy 
operations in the area of the Commander, Mine Sweepers, Baltic 
Sea proceeded according to plan without incidents. 



V. Submarine Warfare 

1. Enemy Situation : 

A number of submarine sighting reports were intercepted 
from the Bay of Biscay, off Cape Hatteras, and off the Brazilian 
coast. Also a message was intercepted from a Brazilian radio 
station stating that the Brazilian coastal vessel GADIVA was 
attacked by a submarine in the same area in which the other 6 
Brazilian vessels were torpedoed. 

2. Own Situation ; 

Group "Loss" is continuing its operation against the 
convoy in the North Atlantic (large quadrant AK) . No successes 
have as yet been reported. 

Submarine U M 98" intercepted a northeastbound convoy off the 
American coast in quadrant DC 1352 but was driven off by 
destroyers and night planes. 

Of the submarines in the South Atlantic , "submarine U"506", 
which belongs to the group operating in the Freetown area, 
sank 2 tankers of 5,000 to 7,000 GRT in quadrant ET 5328. 

I, addition to her previous successes, submarine U "507" , 
stationed off the Brazilian coast, stopped a 6,000 GRT steamer, 
which was sailing with her lights completely dimmed out, with 
gunfire and then sank her with a torpedo shot. The submarine 
also sank the I50 GRT sailing vessel JACYRA. 

As far as the vessels sunk off the Brazilian coast to date are 
concerned, the submarine stated in reply to an inquiry that 
all the vessels involved had been sailing alone and did not 
show a flag or neutrality markings. Their defense equipment 
and armament have not been asertalned. All attacks occurred 
outside the territorial waters. For further discussion of this 
issue with the Foreign Office see V»ar Diary, Part C, Vol. VIII. 

Further reports are included in the Supplement to the Submarine 
Situation in War Diary, Part B, Vol. IV. 

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CONFIDENTIAL 



25 Aug. I9I4.2 



3. Special Items ; 

On the oocasion of the transmission of the Fuehrer 
directive concerning the war against Brazil and Uruguay, the 
attention of all submarines is being called in particular to 
the necessity of avoiding any incidents whatsoever with 
Argentine and Chilean ships and carefully observing any direct- 
ives issued in this respect. 

The Commanding Admiral, Submarines states that, according to 
reports from several submarines, the radar interception sets 
installed on -these submarines were used with good success and, 
as a result, the submarines were able during the day as well 
as at night to escape very dangerous air attacks, such as have 
in the past caused serious damage to, if not the loss of , at 
least a few of our submarines. These facts clearly show the 
importance of these radar interception sets for our submarines. 

The Commanding Admiral, Submarines further remarks that the 
Naval Staff Communications Division, fully realizing the 
actual situation, has attacked the, problem with speed and 
efficiency. It was owing to the sweeping special and prompt 
measures undertaken by the Naval St>aff Communications Division 
that all the submarines scheduled to depart were equipped with 
radar Interception sets within an unusually short period of 
time. (See Telegram I53O.) 



VI, Aerial Warfare 

1. British Isles and Vicinity ; 

During the day our Air Force carried out reconnaissance 
flights and fighter -bomber operations over localities on the 
coast. No noteworthy Incidents occurred during the night of 
23 Aug. 

2« Mediterranean Theater : 

The Air Commander, Africa reports that his forces 
carried out escort and reconnaissance missions, as well as 
free-lance patrol flights. 

3» Eastern Front t 

All in all, 166 planes were reported shot down on the 
eastern front. Reconnaissance flights were carried out over the 
Black Sea, the Caspian Sea, and the Arctic Ocean. A direct hit 
was scored during the air raid on the barracks near Eina Bay. 
1 Whitley V was shot down west of Brest-Lit ovsk on 22 Aug. 

h» Special Items : 

The Air Force Operations Staff has somewhat modified 
the allocation of mine-sweeping planes (see War Diary 18 Aug.). 
For copy see l/Skl 20321A2 Gkdos . in War Diary, Part C, Vol. V, 



-283- 



CONFIDENTIAL 
23 Aug. 191+2 

VII « Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean ; 

An aircraft carrier of the ILLUSTRIOUS class left dock, 
and the CHARYBDIS entered dock In Gibraltar. 3 destroyers de- 
parted in westerly direction, while 1 destroyer arrived from the 
east. The number of ships in Valletta was apparently unchanged. 
No enemy reports have been received from the central and eastern 
Mediterranean. Radio intelligence reported that an unidentified 
British vessel which received fighter escort from Port Said in 
the morning was en route to Alexandria. 

The Admiralty has now confirmed the sinking of the submarine 
UPHOLDER in the Mediterranean. 

2. Own Situation, Mediterranean ; 

Enemy planes attacked Marsa Matruh in the night of 
22 Aug. and Tobruk on 23 Aug. One of the attacking planes 
was shot down. 

Air reconnaissance observed an enemy minefield consisting of at 
least 23 mines at the site of the sinking of the torpedo boat 

CANTORE. 

A German plane spotted 6 steamers and the wreck of 1 destroyer 
In the area between Cape Bon and the Kerkenna Islands. In 
reply to an inquiry, the German Naval Command, Italy stated that 
it knew about this sinking which occurred some time ago. Other- 
wise there was nothing to report. 

3. Transport of Supplies to North Africa ? 

Transport of supplies to North Africa was carried out 
according to plan. In the evening of 22 Aug. 5 landing craft 
from Palermo arrived in Tripoli. 

I4.. Area Naval Group South ; 

Aegean Sea : 

Bad weather hampered the movements of some of the 
convoys. According to an intelligence report from Cairo, the 
British are said to have postponed their attack on Crete till 
September. 

Black Sea » 

Enemy Situation ; 

Radio intelligence reports that in the morning the 
cruiser KRASNY KRIM, the flotilla leader KHARKOV, and 1 destroyer 
were located at an unidentified position at sea. The Fleet 
Command is still in the Batum area. 2 destroyers were located 
in the area between Novorossisk and Sukhum, and 6 vessels, 
probably submarines, were looated in the western part of the 
Black Sea. 

In the evening of 22 Aug. air reconnaissance sighted 1 steamer 
and 2 tankers in Novorossisk, 2 steamers and 5 patrol vessels 
on a southeasterly course between Tuapse and Sukhum, and 

^28i|- 



CONFIDENTIAL 
23 Aug. I9I4.2 

1 submarine 85 miles east of Yalta. 

Own Situation ; 

' In the night of 22 Aug. the 1st PT Boat Flotilla en- 
countered no ships off Tuapse except for patrol vessels, hut 
observed many southbound vessels moving in columns on the 
coastal route. 

J4 vessels of the 3rd Motor Mine Sweeper Flotilla departed from 
Constanta in the evening of 22 Aug. and arrived at Balaklava 
at noon on 23 Aug. The flotilla spotted an enemy minefield 
3.5 miles south-southwest of Balaklava. 

On 22 Aug. 18 Army Siebel ferries and 2 motor fishing smacks 
were brought over from Osipenko to Mariupol where the mine- 
sweeping plane arrived the same day. The force is scheduled 
to start operations off Yeisk Immediately and to sweep the route 
between Mariupol and Yeisk. The transport of supplies from 
Taganrog to Azov proceeded without incidents. So far, 380 
meters of the unloading pier in Yeisk have been completed. 
The work is being continued. 

Special Items: 

The Naval Staff Operations Division Is vigorously 
backing the request of Group South for transport tonnage , 
and for the establishment of a naval supply depot on the 
Caspian Sea with the Naval Staff Quartermaster Division, 



VIII. Situation East Asia 

No noteworthy reports have been received, 



IX. Army Situation 

1« Russian Front : 

Army Group A t 

The Rumanian 3rd Army has penetrated into Temryuk. 

The V Army Corps reached the vicinity of the railway curve 
northwest of Novorossisk. Novorossisk is under fire from 
our guns. Our forces in the Maikop area are being regrouped. 
Parts of the 1st Mountain Division reached the region north 
of Klydzh. A bridgehead was established across the Baksan 
River west of the town of Baksan. 

The 3rd Panzer Division pushed forward across the undamaged 
Leningrad Canal bridge toward the south and crossed the rail- 
road line east of Mozdok at various points. No incidents 
occurred during the advance of the LII Army Corps toward the 
southeast. 



-285- 



CONFIDENTIAL 
23 Aug. 191+2 

Army Group B : 

Parts of the southern pincers operating against 
Stalingrad pushed forward as f a r as the railroad line on berth 
sides of the Tinguta station. In the north, the 6th Army 
advancing in southeasterly direction crossed the railway line 
between Stalingrad and Frolovo and reached the Volga River 
on 23 Aug. at 1700. Thus, the attack on Stalingrad is entering 
its crucial phase. 

Central Army Group ; 

Enemy attacks on the front south of Sukhinichi con- 
tinue. All forces had to be thrown in to ward off persistent 
enemy attempts southeast and north of Rzhev to widen the 
penetration. 

Northern Army Group ; 

The enemy succeeded in driving another wedge into 
the positions of the SS Police Division southeast of Leningrad. 
No noteworthy fighting occurred on the other sectors of the 
Northern Army Group. . 

2. Finnish Front ; 

No fighting of importance was reported. 

3. North Africa ; 

In the night of 21 Aug. our positions southwest of 
El Alamein were subjected to heavy artillery fire. Enemy 
reconnaissance and air activity was as usual. German tanks 
were increased to 220 and Italian tanks to 2lt-2. 



-286- 



CONFIDEN TIAL 
24 Aug. 1942 

Ttftmn of Political Importance 

Great Britain: 

Food Minister Woolton declared that the British need not fear a 
serious food shortage, but that they will have to tighten their 
belts. 

According to press reports, the British trade unions seem to have 
decided to relax their policy aiming at complete exclusion of 
Communists. 13 Labour Party deputies in the House of Commons, all 
the deputies of the Independent Workers' Party, and numerous other 
leading figures have issued an appeal dealing with the war and 
peace objectives and demanding the establishment of a Socialist 
Great Britain as part of the Socialist States of Europe whioh are 
to be expanded into a Socialist World Commonwealth. 

India : 

A diplomatic source reports that the arrest of Gandhi and the Con- 
gress leaders, and the abolition of the Congress Committee have 
temporarily thwarted the civil disobedience movement. On the other 
hand, since the radical circles, which favor solving the problem 
by use of force, now have a free hand, no one at this moment can 
foresee what course events are going to take. It v ie quite pos- 
sible that the Congress leaders will enter into negotiations with 
the Government of India. 

4 

Sweden : 

According to a diploraatio source, the Swedish Foreign Office an- 
nounced that up to now it has unfortunately been unable to determine 
conclusively that the steamer LILJEVALCH was torpedoed by Russian 
submarines. However, the Swedish Navy believes that it has suc- 
ceeded in sinking 2 or 3 Russian submarines. 

South America : 

In a message to that country, Roosevelt welcomed Brazil's declara- 
tion of war. The press in Argentina, Chile, and Portugal expreseee 
sympathy for Brazil's position. 



Conference on the Situation with the Chief. Naval Staff 

I. According to the report by the Chief, Naval Communications 
Division, the naval communications service worked perfectly during 
the enemy landing at Dieppe. The new alarm signal for enemy land- 
ings was used with good results. Unfortunately, the industry has 
too many orders on hand to be able to produce these signals and 
the equipment required for their firing in quantities sufficient 
to equip all naval, Army and Air Force stations on the coasts at 
once. 

The Chief, Naval Communications Division discusses also the favor- 
able reports about the use of radar interception sets on submarines. 
He refers in this respect to the report of the Commanding Admiral, 
Submarines as recorded in War Diary 23 Aug. Actually, the use of 



^287- 



CONFIDENTIAL 
34 Aug. 1942 

radar interception sets is to be considered a mere expedient. The 
ultimate goal should be the establishment of a ground organization 
for determining the exact position of enemy vessels. The Navy 
is working on this problem. In this connection it is neoeesary to 
negotiate with Spain. 

Reports have also been received about satisfactory results aohieved 
with anti-radar devices on submarines in the case of 2 enemy de- 
stroyers. 

II. The Chief, Naval Staff Quartermaster Division reports about 
the request of the Commander, Destroyers for the creation of the 
4th Destroyer Flotilla. The Naval Staff Quartermaster Division is 
inclined to disagree with the request. The Chief, Naval Staff, 
however, decides that the Commander, Destroyers should first state 
his views once more. 

III. The Chief, Naval Ordnance Division discusses details concern- 
ing the Navy in connection both with the conference notes of the 
General of Engineers at the Army High Command and with the direotive 
of the Armed Forces High Command regarding the Fuehrer's order for 
development of coastal fortifications. 

IV. Captain Wagner from the Naval Construction Division reports 
on the visit of the Minister for Armaments and War Production to 
the Wilhelrashaven shipyard. On that occasion the Minister said 
that he would have to report to the Fuehrer that he is unable to 
supply the required 8,400 skilled workers for the shipyards. The 
Navy will have to be satisfied with foreign labor. Gauleiter 
Saukel has already received instructions to this effect. On the 
same occasion it was established chat the Navy Yard at Wilhelmshaven 
already employs about 25$ foreign labor; whereas Staatsrat Blchm, 
who was present at the conference, admitted in answer to the Ship- 
yard Superintendent, Wilhelmshaven that his own shipyard employs 
only about 16$ foreign labor. Minister Speer suggested further- 
more that the quality of the technical personnel be improved by 
advancing higher officials without regard for seniority - a step 
which is already under consideration by the Armed Forces High Com- 
mand. 

V. The Chief of the Underwater Obstacles Branch, Naval Ordnance 
Division reports that rack mines are now released in urgent cases 
for use in operations areas up to a depth of 250 meters. They 
will not be released for general purposes before the results of 
the test undertaken somewhere in the Atlantic are known. 

In a Restricted Circle: 

VI. The Chief of the Foreign Affairs Section, Naval Staff Opera- 
tions Division reports about the Naval Staff's position with re- 
gard to the question of the use of arms against Brazilian vessels, 
as recorded in War Diary 23 Aug. For further discussion of this 
issue see War Diary, Part C, Vol. VIII. 

In a Very Restricted Circle: 

VII. The Chief, Operations Branch, Naval Staff Operations Division 
reports on the plans of Group North in connection with the minefield 
situation in the Arctic Ooean and on the progress of operation 

"Wunderland". 



-288- 



CONFIDENTIAL 



24 Auft. 1942 



VIII. The 'Chief of Staff, Naval Staff di s cusses the question whether 
the outbreak of war v/Ith Brazil makes it suitable to assign those 
submarines which were scheduled to operate off Cape Town to opera- 
tions off the Brazilian coast. The Naval Staff believes that the 
Cape Town operation should be carried out as planned and that 4 

of the -submarines, which will become ready for action at a later 
date, should be reserved for operations off Brazil, if necessary. 
The Chief, Naval Staff is of the same opinion. 

IX. The Chief, Naval Staff Operations Division suggests postponing 
the award of an oak leaf cluster to the ICnight's Cross to the com- 
mander of ship "28" for the time being; instead Commander von 
Ruckdeschell should be promoted to captain and av/arded the German 
Cross In gold. The same decoration should be awarded to the com- 
mander of ship "10" when the ship arrives in Japan. The Chief, 
Naval Staff agrees. 

For copies of these requests see l/Skl 20867 and 20868/42 Gkdos. 
in War Diary, Part B, Vol. V. 



Special Items : 

I. According to the report of the Chief, Naval Intelligence Divi- 
sion, Uruguay's declaration of war on the Axis powers was not com- 
municated to the Axis In any way and was mentioned only in a,few 
enemy radio reports. It is positive that no such declaration has 
been issued so far. Uruguay's attitude will not be determined 
until today's special session of the Cabinet. 

Also the Armed Forces High Command Operations Staff reports that 
the state of war with Uruguay is not yet a fact. 

The Naval Staff has instructed the Commanding Admiral, Submarines 
and Group West accordingly. 

The Naval Staff's belief that the Armed Forces High 
Command was better informed about the matter has 
thus proved unfounded. Of course, the Naval Staff 
could not expect the Armed Forces High Command to 
make such an error. 

II. The Naval Attache in Tokyo reports that the Japanese Navy 
asked the German Air Attache in Tokyo to use his influence to have 
2 German planes assigned to direct air traffic between Japan and 
Germany. The Naval Atta-che was asked to support the request. 

The Nnval Staff has an undeniable Interest in the 
establishment of such a direct air route. The 
matter, however, primarily concerns the political 
authorities and the Commander in Chief, Air Force. 

III. On the basis of information received up to 15 Aug. 1942 the 
Naval Intelligence Division, Foreign Merchant Marine Branch has 
submitted a report about the convoy and unescorted vessel routes 
in the Atlantic. As for the South Atlantic , the report contains 
the same facts as recorded in War Diary 17 and 21 Aug. 

As anticipated, the Halifax route in the North Atlantic continues 

to run somewhat to the north because of the . season. It 3s confirmed 



-289- 



CONFIDENTIAL 
24 Aug. 1942 

that incoming ships use the northern part of the route and outgoing 
vessels the southern part. 

The convoy situation in the Western Atlantic presents a clearer 
picture than before. 

2 convoy routes for the American coastal traffic have been definitely 
ascertained: one between New York and the Florida Strait, the other 
between Trinidad and the* Florida Strait. It is not yet known 
whether both routes continue further in the Gulf of Mexico. 

In addition to these ooastal routes, convoy traffic is also being ■ 
maintained between Aruba or Trinidad and Halifax, evidently for 
bringing oargo to or carrying cargo from the shins using the Halifax 
route. 

For report and map see l/Skl 20993/42 Gkdos. in War Diary, Part 0, 
Vol. I. 

IV. The Chief of the Communications Intelligence Branch, Naval 
Staff Communications Division has made a survey of the distribution 
of Russian naval forces as of 20 Aug. 1942. For copy see l/Skl 
29123/42 geh. in War Diary, File "Barbarossa". 



Situation 24 Aug. 1943 

I. War in Foreign Waters 

1. Enemy Situation ; 

South Atlantic : 

According to an intelligence report, 2 large Anglo- 
American convoys carrying troops and materiel for the Caucasian 
front waited in Freetown to see whether the attempted crossing of 
the Mediterranean would be successful, and are now being sent off 
via Cape Town. 

If this report is based on absolutely reliable 
enemy information, it would greatly contribute to 
a correct estimate of the actual objective of the 
convoy force recently shattered in the Mediterranean, 
It would be useful not only to check these facts 
but also to obtain a definite answer to the ques- 
tion of whether the convoy consisted of 31 or 12 
merchant ships. 

According to a report from Duala, both Victoria and Duala are 
blacked out, and there are mines in the Murabo River. 

Indian Ocean : 

According to an intelligence report, there are constantly 
about 100 ships based in Aden for the India traffic. 

Pacific Ocean : 

Another Brazilian tanker, the SANTA MARIA, is reported to 
have passed through Punta Arenas heading for the Paoific on 15 Aug. 

-290- 



• COITFIi^ITTIAL 
24 Aug. 1942 

2. Own Situation: 



waters . 



L T o reports have been received from our vessels in foreign 



For the report of the German Armistice Commission, France on the 
positions of French convoys and merchant ships see Telegram 1120. 



> 



> 



II. Situation 'west Area 

1. E nemy Situation ; 

According to a report of 22 Aug. of the Italian naval in- 
telligence service, from a generally well-informed source, the 
British intend to make a landing on the coast of unoccupied France 
on 26 Aug. and to undertake, if possible, a simultaneous operation 
against the Spanish coast on the Bay of Biscay. 

As a matter of principle, the enemy should never be 
suspected of any such blunt error as pushing France 
and Spain on our side by forcing them to abandon 
their present non-committal attitude, which holds 
opportunities in either direction. Both the London 
and the Washington Governments must very well know 
that at the present stage of the military situation 
they would encounter serious resistance in both 
countries and would merely play into our hands if 
all the men, merchant tonnage, warships, and any 
other war potential of these two countries situated 
on the Atlantic and the Mediterranean became avail- 
able for our military purposes. This would immed- 
iately relieve us of having to make considerable 
concessions in solving the political problems that 
appear so difficult at the present moment. 

From this point of view the report* appears absolutely 
untrustworthy. (Tr. II.: The last sentence of this 
paragraph originally read as follows: "If we 
evaluate the Italian report very critically - and 
this is probably unjustified - it might be considered 
whether Italian ant i -Axis circles, which undoubtedly 
exist, mistake the situation to such an extent that 
they believe Italy could be brought to the side of 
the Allies by an Allied invasion of southern France 
and Spain." This sentence was crossed out and re- 
placed by the following marginal note signed by 
V/agner on 31 Aug.: "Not likely. It is more likely 
that the report was inspired by concern of the 
Italians that a situation might arise with which 
they are unable to cope. For this reason the sen- 
tence has been crossed out."). 

Air reconnaissance over the Channel observed lively convoy and 
steamer traffic, as well as mine-sweeping operations off Hastings. 



-291- 



CONFIDENTIAL 
24 Aug. 1942 

2. Own Situation ; 

Atlantic Coast ; 

Nothing to report. 

Channel Coast ; 

Mine operation "Klara" was executed during the night of 
23 Aug. During the operation, the center of the minefield was 
under long-range covering fire between 0540 and 0550. At 0553 
the 10th Motor Mine Sweeper Flotilla and the escort forces had an 
engagement with enemy forces. 2 motor gun boats were set afire. 

I enemy motor gun boat blew up after having been set afire. Radio 
intelligence confirms the destruction of the vessel. At 0627 a 
detonation was heard at the northern end of the new minefield. 
From the shore one vessel with a funnel was observed to break into 
flames, blow up, and sink after hitting a mine. For the brief 
battle report of the commander of the motor mine sweeper force see 
Telegram 1630. For the report about the mine operation see Tele- 
gram 1655. It is certain that the enemy is aware of the minefield, 
since our ships were located accurately and there was an engagement 
with enemy forces during the mine-laying operation. 

The 2nd group of the 5th PT Boat Flotilla failed to sight any 
vessels during its patrol tour in the early morning of 24 Aug. For 
brief report of the 5th PT Boat Flotilla see Telegram 1100. 

The assertion made in the first reports about the enemy landing 
near Dieppe on 19 Aug., that 1 British steamer landed at the outer 
jetty, proved incorrect after further investigation. For the cor- 
responding telegram from Group West to the Naval Staff, which con- 
tains also further details about the part played by naval units 
in repulsing the landing, see File "Enemy Landing at Dieppe on 
19 Aug. 1942". 

II boats of the 2nd and 4th PT Boat Flotillas are scheduled to 
carry out a mine operation on the southeast coast during the night 
of 24 Aug. During the same night PT boats S B 78 n and S "115" are 
scheduled to transfer from Boulogne to Rotterdam. 



III. North Sea. Norway. Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

Nothing to report. 

Own Situation ; 

Mine operation "Fuenfte Kolonne" has begun. 

2 ground mines were swept off Borkum. Convoy and patrol operations 
in the area of the Commanding Admiral, Defenses, North proceeded 
according to plan* 



-292- 



CONFIDENTIAL 
34 Aug. 1942 

3. Norway. Arctic Ocean : 

Enemy Situation ; 

Air reconnaissance spotted 5 steamers and 5 escort ves- 
sels lying off Archangel, and one 2,000 GRT steamer proceeding in 
the direction of the harbor 60 miles off Archangel. 

Own Situation ; 

Norway ; 

The equipment unloaded by the enemy plane on Langoe Island 
consists of 3 rubber rafts and 2 radio transmitters. The search 
for the 3 men who escaped has failed so far. 

On 22 Aug. the Russian battery on the Rybachi Peninsula fired at 
Nurmansaetti and at the approach to Petsamo harbor without causing 
any damage. In spite of search gear, hydrophones and plane sup- 
port, subchase in the Feiestein-Lister area was unsuccessful. 

Transport and convoy operations proceeded according to plan. The 
steamer KERKPLEIN, from the transport group carrying Russian war 
prisoners, was put in quarantine in Kirkenes on suspicion of typhus. 

The Commanding Admiral, Norway has issued directives for the release 
of battle instructions for coastal batteries. For copy of message 
to the Naval Staff Operations Division see l/Skl 20769/42 Gkdos. 
in War Diary, Part C, Vol. X. 

Group North has agreed to the proposal of the Commanding Admiral, 
Norway concerning the removal of the UMB mines from the minefield 
in the Westby Fjord. The gap will be refilled after the KOENIGSBERG 
has been towed through. Group North also agrees to the laying of 
5 single-row anti-submarine minefields in the area between 
Kristiansand South - and Stavanger, as proposed by the Commanding 
Admiral, Norway, and requests the Naval Staff to authorize the 
operation (see Telegram 1823). 

In connection with this mine project, the Fleet suggests that mine- 
fields 1, 2, 4, and 5 be laid at a distance of at least 2.5 to 3 
miles both from the inner and the outer routes, and that minefield 
3 not be laid. To assure the necessary freedom of movement, the 
Fleet demands that the mines be laid at a depth of at least 15 
meters. (See Telegram 2105.) 

Arctic Ocean ; 

The Admiral, Arctic Ocean supplements his directive for 
extension of operation "Wunderland" (see War Diary 23 Aug.) with 
the remark that it is not meant as an inflexible order, and that 
the thrust into the Kara Sea may be oarried out if circumstances 
promise success. 

Mine operation "Zar H was started in the evening. The route for 
the mine sweeper ULM corresponds to the departure route of the 
SCHEER up to 78° N, 40° E. From there on, the vessel is to change 
to an easterly course in order to mine a large area bounded by 



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CONFIDENTIAL 



34 Aug. 1943 



75° N, 55° 35» E; 75° N, 53° E; 76° 30« N, 53° E; 77° 30' N, 63° E. 
Beginning at 1300 on 37 Aug. no vessels are permitted to pass througi 
this mined area. 

Air reconnaissance reports that on 23 Aug. the waters on the west- 
ern coast of Novaya Zemlya were free of ice and the Matochkin Shar 
was covered with drift ice. A 30 to 50 km. wide drift ice zone was 
observed off the eastern coast of Novaya Zemlya, while the rest of 
the Kara Sea, as well as the Kara and Yugor Straits, were free of 
ice. It has not been established whether ships can pass through 
the Matochkin Shar. 

Group North expects all unacoorapanied steamers proceeding from the 
British Isles to the east to carry valuable cargo, which means that 
it would pay to send comparatively strong forces against these 
steamers, particularly since the system of using unaccompanied 
vessels for the transport of enemy supplies is undesirable and 
makes the sinking of such Bhips imperative. The Naval Staff is of 
the same opinion. 

The Naval Staff has asked Group North to investigate how the as- 
signment of 3 Finnish submarines to the area of the Admiral, Arctic 
Ocean would affect the problem of bases and supplies, and what ar- 
rangements would have to be made concerning command. 

Group North has ordered that all submarine commanders be informed 
of the experiences made with convoy PQ 18. For telegram to Naval 
Staff see l/Skl 30825/43 Gkdos. in War Diary, File "Eispalast". 



IV. 3kagerrak. Baltic Sea Entrances. Baltic Sea 

1. Enemy Situation : 

Nothing to report. 

3. Own Situation : 

The Finnish steamer ELSE struck a mine and sank off 
Vesborg (Samsoe). A mine-detonating vessel swept 1 ground mine 
6 miles north of Swinerauende. 

Minefields "Seehund I" and "Seeigel XXI" were laid in the Gulf of 
Finland according to plan. During the laying of minefield "Seeigel 
XXI", 11 enemy vessels were sighted, including 3 large motor mine 
sweepers or patrol vessels. Two explosions were observed, ac- 
companied by big columns of fire which later changed into a glow. 
It is therefore assumed that 3 vessels were destroyed in the 
"Seeigel II" minefield. 



It Merchant Shipping 

On the basis of data about the Spanish shipbuilding industry 
supplied by the Naval Intelligence Division, Foreign Merchant 



-394- 



CONFIDE NTIAL 
34 Aug. 1942 

3. Norway. Arctic Ocean ; 

Enemy Situation : 

Air reconnaissance spotted 5 steamers and 5 escort ves- 
sels lying off Archangel, and one 2,000 GRT steamer proceeding in 
the direction of the harbor 60 miles off Archangel. 

Own Situation : 

Norway : 

The equipment unloaded by the enemy plane on Langoe Island 
consists of 3 rubber rafts and 2 radio transmitters. The search 
for the 3 men who escaped has failed so far. 

On 22 Aug. the Russian battery on the Rybachi Peninsula fired at 
Nurmansaetti and at the approach to Petsamo harbor without causing 
any damage. In spite of search gear, hydrophones and plane sup- 
port, subcha8e in the Feiestein-Lister area was unsuccessful. 

Transport and convoy operations proceeded according to plan. The 
steamer KERKPLEIN, from the transport group carrying Russian war 
prisoners, was put in quarantine in Kirkenes on suspicion of typhus. 

The Commanding Admiral, Norway has issued directives for the release 
of battle instructions for coastal batteries. For copy of message 
to the Naval Staff Operations Division see l/Skl 20769/42 Gkdos. 
in War Diary, Part C, Vol. X. 

Group North has agreed to the proposal of the Commanding Admiral, 
Norway concerning the removal of the UMB mines from the minefield 
in the Westby Fjord. The gap will be refilled after the KOENIGSBERG 
has been towed through. Group North also agrees to the laying of 
5 single-row anti-submarine minefields in the area between 
Kristiansand South and Stavanger, as proposed by the Commanding 
Admiral, Norway, and requests the Naval Staff to authorize the 
operation (see Telegram 1823). 

In connection with this mine project, the Fleet suggests that mine- 
fields 1, 2, 4, and 5 be laid at a distance of at least 2.5 to 3 
miles both from the inner and the outer routes, and that minefield 
3 not be laid. To assure the necessary freedom of movement, the 
Fleet demands that the mines be laid at a depth of at least 15 
meters. (See Telegram 2105.) 

Arotic Ocean : 

The Admiral, Arctic Ocean supplements his directive for 
extension of operation "Wunderland" (see War Diary 23 Aug.) with 
the remark that it is not meant as an inflexible order, and that 
the thrust into the Kara Sea may be carried out if circumstances 
promise success. 

Mine operation "Zar H was started in the evening. The route for 
the mine sweeper ULM corresponds to the departure route of the 
SCHEER up to 78° N, 40° E. From there on, the vessel ie to change 
to an easterly course in order to mine a large area bounded by 



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CONFIDENTIAL 
24 Aug. 1942 

3. Eastern Front ; 

89 enemy planes were shot down on the Army fronts. In 
the night of 24 Aug. 21 Ju 88»s attacked Archangel. Big fires were 
observed. 



VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation. Mediterranean : 

In the night of 23 Aug. the ILLUSTRIOUS-class aircraft 
carrier left Gibraltar with 4 destroyers for the Atlantic. Of 
the large warships, the CHARYBDIS and the NIGERIA are still in 
dock in Gibraltar. In the afternoon a convoy consisting of 8 
steamers, 2 corvettes, and 2 gunboats entered Gibraltar from the 
west. According to an intelligence report from Spain, an un- 
identified warship has been patrolling the waters 12 miles off 
Cape Tres Forcas since 0700. 

Submarines were sighted off Naples, off the Strait of Otranto, 

and off the African coast north of Has el Tin. In the latter case, 

the purpose might have been to reconnoiter the minefield. 

At 2130 air reconnaissance sighted 2 westbound vessels, probably 
destroyers, about 40 miles west -northwest of Alexandria. At 1330 
radio intelligence intercepted a message from a plane reporting 
an aerial torpedo attack on a submarine some 100 miles north- 
northeast of Marsa Matruh without any observed hit. 

2. Own Situation. Mediterranean ; 
Nothing to report. 

3. Transport of Supplies to North Africa ; 

Transport of supplies from Italy and Greece and coastal 
traffic proceeded according to plan. 

4. Area Naval Group South : 

Aegean Sea : 

No incidents occurred during the convoy and mine-sweeping 
operations. 

The tanker ALBARO was unable to depart from Piraeus for the 
Dardanelles because of rudder damage. 

Black Sea ; 

Enemy Situation : 

Air reconnaissance observed 5 steamers, 1 tanker, and a 
number of PT boats in Tuapse on 23 Aug. In the Tamanskaya Bay 
numerous small vessels were observed in north-south shuttle traffic. 
The oruiser KOMINTERN and 1 destroyer were sighted on a southerly 
oourse in the Sukhum area. 1 tanker and 2 steamers esoorted by 1 
destroyer and 2 patrol vessels were seen departing from Tuapse. 

-296- 



CONFIDENTIAL 
24 Aug. 1942 . 

Own Situation ; 

The Italian subchasers which were sent into aotion off 
Novorossisk in the night of 23 Aug. sighted no enemy vessels. On 
22 Aug. motor mine sweepers swept 1 moored mine off Mariupol. 

In the afternoon of 23 Aug. an enemy submarine attacked and sank 
the tug ANKARA from the southbound convoy off the Bessarabian coast 
near Cape Burnas. The other vessels of the convoy entered Sulina 
toward midnight. The anti-submarine chase undertaken by a Rumanian 
gunboat appears to have been successful. Otherwise convoy opera- 
tions proceeded as planned. 4 landing craft are en route from Linz 
to Sulina. PTboat S "26" is proceeding from Linz to Galatz. 

5. Special Item s: 

(1) See Telegrams 1035 and 1335 for preparations by 
Group South in order to provide a port commander for Astrakhan and 
to effect a prompt transfer of naval motor boats from Azov to the 
Caspian Sea, as well as for measures to defend Astrakhan with 
coastal artillery and river mines. 

(2) Group South points out that since mid-April our 
submarines have been making a much more extensive use of the 
Salamis base than originally planned. The result is that neither 
the requirements of the submarines nor the repair needs of the 
vessels under the. Commanding Admiral, Aegean Sea can be met in 

a satisfactory way. This situation can only be remedied either 
by restricting the demands on the shipyard to one vessel at a 
time or by increasing the capacity of the shipyard to an extent 
whioh would meet the actual needs. Group South believes that the 
latter alternative would be more in line with the actual situation. 

The Naval Staff Quartermaster Division will take care of the matter, 

(3) On 13 Aug. the Naval Shore Commander, Crimea re- 
ported on the progress of work on the installation of batteries 

x of the 601st Naval Coastal Artillery Battalion. 7 batteries total- 
ling 21 guns have been installed in Yalta, Ivanbaba, Genichesk, 
Feodosiya, Ak Mechet, Komuna Initsyativa, and Ak Burnu. The two 
last-mentioned batteries were emplaced early enough to participate 
effectively in the artillery attaok by all German coastal batteries 
in the Kerch Strait area on 8 Aug, The assignment of crews for 
theBe batteries has exhausted, to the last man the personnel of 
the Naval Shore Commander, Crimea. It is planned to install 4 
more batteries, i.e., battery Cape Kany (north of Kerch), battery 

\ Balaklava, battery "von der Goltz" with four 20.5 cm. guns on 
Xiape Kherson near Sevastopol, and battery Sevastopol on the southern 
outlet of the Severnaya Bay. 



IX. Situation East Asia 
Nothing to report. 



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CONFIDENTIAL 
24 Aug. 1942 

X. Array Situation 

1. ' Russian Front : 

Army Group A ; 

The Rumanian 3rd Army broke the last enemy resistance in 
Temryuk and established a bridgehead over the Kuban River west of 
Temryuk. The western group of the V Army Corps is fighting a heavy 
battle against the enemy's intensified defense of Novorossisk. The 
hills west of the town were taken in bitter hand-to-hand fighting. 
Enemy air activity over the entire Army area, concentrating on 
Novorossisk, is so intense that our artillery is at times forced 
to cease firing. Enemy troops facing the XLIX Mountain Corps were 
reinforced south of the Klydzh. According to prisoner statements, 
2 enemy mountain divisions are committed to the defense of the val- 
ley. The 1st Panzer Army extended the bridgehead at Baksan and 
repelled enemy attacks on the bridgehead near I.Iaisky. The 3rd 
Panzer Division mopped up the remaining enemy forces at Mozdok 
and was likewise subjected to particularly heavy air attacks. The 
LII Army Corps advanced further to the .southeast without encountering 
any enemy forces. A long-range patrol force effectively destroyed 
the railroad line between Astrakhan and Kill a north of Rastolye. 

Army Group B : 

The large-scale attack against Stalingrad is being car- 
ried on despite continued stubborn enemy resistance. The enemy is 
maintaining strong pressure on the Italian position on the Don 
River, with the result that the left wing of the Ravenna Division 
has collapsed. A counterattack is under way. 

Central Army Group : 

In the area south of Sukhinichi a large-scale enemy attack 
launched after the heaviest artillery preparation collapsed under 
an especially effective attack by our planes. East of Vyazma, the 
enemy succeeded in penetrating deep into the position of the 292nd 
Infantry Division after several of his previous attacks had been 
repulsed. 

Particularly heavy fighting developed in the course of the battle 
near Rzhev. After a period of quiet, the Russian 30th and 31st 
Armies opened a heavy barrage the like of which has never before 
been experienced. This was followed by attacks on our positions 
near Zubtsov, and north of Rzhev v/ith superior tank and infantry 
forces proceeding in tightly closed columns under strong air sup-- 
port. The enemy penetrated into our lines at several points. After 
bringing up every available reserve, our forces launched a counter- 
attack. The heavy battle is still in progress. 

Northern Army Group ; 

South of Staraya Russa our troops repelled tank- supported 
enemy attacks launched times in succession. New attacks on 
Byelibor were likewise beaten off. Southeast of Leningrad the 
enemy forced our troops to withdraw their front. 



-298- 



CONFIDENTIAL 
24 Aug. 1942 

2. Finnish Front : 

Lively enemy patrol and assault troop activity was re- 
ported from all fronts. 

3. North Africa : 

No noteworthy reports have been received. 

ft************************ 



-299- 



CONFIDENTIAL 
25 Aug. 1942 

Items of Political Importance 

Brazil's entry into the war : Brazil's note to Germany will not 
proclaim actual warfare between the two countries but merely the 
existence of a state of war; this is meant to indicate that Brazil 
wants to wage a defensive war only. 

Subtle differentiations of this sort can, of course, 
not alter the fact that an unrestricted state of war 
actually exists. 

A special meeting of the military representatives of the 21 Ameri- 
can Republics on the Pan American Defense Committee accepted a reso- 
lution sponsored by Ecuador which expressed solidarity with Brazil. 
In this connection, the Chilean; representative deolared that his 
country could not remain silent' or indifferent toward the destruc- 
tion of Brazilian ships and would continue its loyal and effective 
support of the policy of continental solidarity. 

In accordance with the stipulations of the Rio Conference of Febru- 
ary 1942, so far Uruguay, Peru, Argentina, and Chile have announced 
that they consider Brazil non-belligerent. 

In connection with the Moscow conferences it is learned from 
diplomatic sources that General Voroshilov has been named Com- 
mander in Chief of the Caucasian front on the basis of the talks 
betv/een Churchill and Stalin. Turkish diplomatic circles, which 
are the source of this report, believe that the Moscow conferences 
were concerned chiefly with Anglo-American aid for the Caucasus 
front and with the establishment of a front in the Near East. 

Churchill returned to London on 24 Aug. In view of the secrecy 
surrounding all matters connected with the visit to Moscow, the 
Dally Herald voices a vigorous protest against Churchill's secret 
policies. 

France : 

Marshal Petain commented enthusiastically to a German diplomat on 
the successful defense of Dieppe and also predicted a very favor- 
able development of the war. He does not doubt that the German 
Army will reach Baku and the mouth of the Volga River and thus 
achieve victory over the Soviet Union, although the capture of the 
Caucasus might meet with major difficulties. Great Britain can be 
conquered only by an invasion of the British Isles. If this 
happens, the U.S.A. will withdraw from England and will no longer 
be interested in a continuation of the war. 

In Darlan's opinion the British may make similar landing attempts, 
possibly even on a larger scale, during the fall. In the east, 
however, the fate of the Soviets will be sealed by the capture of 
Stalingrad and the seizure of the Volga mouth. In the Caucasus, 
Germany must be prepared for the intervention of Anglo-American 
forces. Suez represents the key position of enemy operations and 
of the collapsing British Empire; its capture is therefore of de- 
cisive importance for Germany. 



-300- 



CONFIDENTIAL 



25 Au 






Portugal : 

The German Minister reports from Lisbon that British propaganda is 
beginning to take effect against Salazar due to the growing dissat- 
isfaction of labor circles caused by economic tension. 

Reports from consulates of neutral countries assyrt unanimously that 
communist activities have greatly increase'' in d If ferent parts of 
the U.S.A., for instance "in Virginia. For details see Political 
Review No. 19G, paragraph 7a. 



Conference on the Situation with the Chief , Naval Staff 

I. The Chief, Naval Staff Communications Division reports that the 
"Kirschbluete" has taken 45 cases of communications equipment back 
to Japan. The appreciable quantity of shellac and mica brought by 
the submarine upon German request will be very useful for the con- 
struction of- such equipment in Germany. The Chief, Naval Staff 
orders that these supplies of scarce material be stored by the Navy, 
with the provision that the most urgent requirements of other 
branches of the Armed Forces are to be satisfied. 



II. The Chief, Naval Staff Quartermaster Division reports that the 
Naval Construction Division has suggested that the French cruiser DE 
GRASSE, now in an unfinished condition at St. Nazaire, be completed 
as an aircraft carrier. The ship is particularly suitable for this 
purpose on account of her design and her high speed. The Chief, Na- 
val Staff orders that first of all the practical aspects be investi- 
gated. 

III. The Chief, Naval Staff Quartermaster Division further reports 
on the progress made with the new Norwegian batteries. On this 
occasion he rejects the unjustified reproach of the General of the 
Engineers, Norway that the heavy batteries are insufficiently pro- 
tected. The Chief, Naval Staff orders that the Fuehrer be informed 
at the next opportunity about this matter. 

IV. The Chief, Foreign Affairs Section, Naval Staff Operations Di- 
vision reports on the Japanese refusal to accept the war prisoners 
taken by German auxiliary cruisers prior to an agreement regarding 
the cost. The Naval Staff's standpoint is that this matter has to 
be settled somehow by the Foreign Office. The Naval Staff must in- 
sist that the war prisoners be taken over in every case without 
delay. 

In a Very Restricted Circle : 

V. The Chief, Naval Staff Operations Division reports on the 
account of the German Admiral at Rome concerning his relations with 
the Commanding General, Armed Forces, South; the latter arranged 
with General Cavalloro the organization of an A_ir Force Liaison 
Staff of 3 members attached to the Italian Admiralty without notify- 
ing the German Admiral, When the German Admiral, Rome protested, 
Field Marshal Kesselring agreed to comply with the demand that the 
Liaison Staff be placed under the authority of the German Naval 



-501- 



CONFIDENTIAL 
25 Aug. 1942 

Command, Italy on condition that the Navy assigns a qualified Ad- 
miral Staff Officer exclusively' to the Liaison Staff, Since the 
Italian Admiralty feels it must comply v/ith the directive of the 
Italian High Command, the Naval Staff believes that the stipula- 
tion will have to be met. The Chief, Naval Staff shares this 
opinion and deplores the fact that the German Admiral and his Chief 
of Staff were not able to avoid this clash with the Commanding 
General, Armed Forces, "South. He orders that the name of a candi- 
date suitable for the assignment be submitted. 

The Chief, Naval Staff Operations Division also reports that Field 
Marshal Rommel . was taken sick so that he may not be able to con- 
tinue in command. 

His absence just at this time would leave a gap 
very hard to fill. 



Special Item 

The Commander in Chief, Navy appointed the Chief, Naval Staff Com- 
munications Division, as his special deputy for radar and anti- 
radar for the entire Navy. 

For the directive M 562/42 of the Commander in Chief, Navy see 
l/Skl 20585/42 Gkdos. in War Diary, Part B, Vol. V. 



Situation 25 Aun. 1042 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic : 

According to an intelligence report from Portugal, 15 
British steamers unexpectedly had to unload their cargoes destined 
for England at Gibraltar and to proceed empty to Freetown. 3 ships 
at Lisbon received a similar order.. 

South Atlantic : 

A badly garbled message of the Roar Admiral at Freetown of 
5 Aug. reveals a British belief that submarines and not a German 
auxiliary cruiser are operating in a certain area which could not be 
made out. The submarines are assumed to be cooperating v/ith a 
supply ship located south of Las Palmas. This communication is con- 
nected v/ith the reports caused by the appearance of ship "28" in 
the Gulf of Guinea. 

Indian Ocean : 

Radio monitoring intercepted in the East Indian area 
several urgent operational radio messages flashed from the British 
Isles to Colombo. On 23 Aug. a submarine warning was broadcast 
for the area 80 miles north of Ceylon. 

-302- 



CONFIDENTIAL 
25 Aug. 1942 

2, " Own Situation : 

The operations of our auxiliary cruisers overseas showed 
the following results for the summer period: 

Ship "28": 9 vessels totalling 60,262 GRT 

ShJ.p "10": 10 vessels totalling 56,037 GRT 

Ship "23": 4 vessels totalling 22,000 GRT 

DOGGERBANK: 3 vessels totalling 16,667 GRT 

Total: 26 vessels totalling 154,966 GRT 

Not included in these figures are 3 ships of 21,000 GRT and the de- 
stroyer tender HECLA which struck mines in the Doggerbank minefields, 
but the sinking of which was not confirmed. 

Mainly for its psychological effect on the crews of the auxiliary 
cruisers the Naval Staff proposes that the following be inserted 
into the communique of the Armed Forces High Command or released 
as a special communique: 

"German auxiliary cruisers operating overseas accounted for 26 ships 
totalling 154,966 GRT during the summer 1942." 

The Naval Attache at Tokyo transmits the last part of the excerpt 
from the log of ship "28" ending on 25 Jun. The entries deal. with 
experiences with the shipborne plane and contain also a demand for 
the enlargement of the deep freeze units. 

The Japanese Liaison Officer communicates that the Japanese are 
planning naval operations in the Indian Ocean and he therefore re- 
quests that the operations zone of German auxiliary cruisers be 
limited between 10 Sep. and the end of the year to an area de- 
fined by the following points : 

a. 35° S, 60° E; 30° S, 70° Ejj 30° S, 100° E; 50° S, 100° Ej 
50O S,60° E. 

b. West of 60° E and south of 40° S. 

Should still larger Japanese operations develop in the Indian Ocean 
area, the Japanese Admiralty would request a further reduction of 
this zone, though this would be only temporary. The Japanese Navy 
claims all the rest of the Indian Ocean as far as Capetown for its 
operations. 

The Liaison Officer reported also having learned from a conversa- 
tion with the captain of the "Kirschbluete" that Japanese cruisers 
and destroyers probably made an unsuccessful advance beyond the 
Cocos Islands in a southwesterly direction. 

The Liaison Officer further reported in strictest confidence that 

the Italians had approached the Japanese with a plan to operate 

a submarine in South African waters; the Japanese, however, refused. 

Enemy situation report by Radiogram 0312. 



-303- 



CONFIDENTIAL 
25 Aug. 1942 

II. Situation West Area 

1« Enemy Situation ; 

The investigation of reports from Italian sources about 
British plans for landings in southern Prance and northern Spain, 
which v/as conducted by our Armed Forces Intelligence Service in 
Spain, proved completely negative. The Intelligence Service does 
not believe in the probability of an operation at the northern 
Spanish coast. 

The Naval Attache &-t Lisbon reports unconfirmed rumors about a 
British intention to stage -further raids on the French coast. 

The Naval Attache at Buenos Aires transmits information originat- 
ing from captains of British ships; according to them Scotland, 
particularly Glasgow, is the center of British military activities, 
not London. The captains believe that Headquarters of the British 
Admiralty and of the Royal Air Force are in Glasgow. 'About 6 weeks 
ago a few thousand so called invasion barges are said to have been 
transferred from Scottish to southern English' harbors, mostly to 
Eastbourne and other places near Plymouth. Also special Diesel 
tugboats were transferred at the same time. Each tug tows 5 or 6 
barges which have small motors themselves. The captains figure 
that major operations will take place as soon as the autumnal fogs 
set in. 

2. Own Situation ; 

Atlantic Coast : 

The roadstead of La Pallice v/as closed on account of 
suspected mines. A ground mine v/as swept in Quiberon Bay. 

With reference to Group West's demand for regular strong escorts 
of outgoing blockade-runners as far as 18° W (see War Diary 21 
Aug.), the 3rd Air Force replied that the momentary weakness of the 
forces at its disposal does not permit the assignment of the de- 
sired number of escorts. 

Channel Coast ; 

PT boats S "78'* and S "115" transferred to Rotterdam 
according to plan. The 2nd and 4th PT Boat Flotillas were en- 
gaged by enemy destroyers while and after executing their mine- 
laying assignments; the missions" were carried out. For short re- 
ports of the flotillas see Telegrams 1005 and 1055. 



III. North Sea, Norway, Arctic Ocean 
1. North Sea: 

Enemy Situation ; 

The British Admiralty announces an attack on 4 German 

-304- 



CONFIDENTIAL 



25 Aug. 1942 



anti-aircraft ships by British PT boats which took place in the 
evening of 24 Aug. off Flushing; one of the German ships was hit 
by a torpedo and sank. 

Own Situation : 

Patrol boats "1304", "1309", "1310", and "2008" had a 
brush with British motor gunboats In quadrant AIT 8738 lasting 
from midnight to 0227. 2 .enemy motor gunboats were reported sunk. 
Our vessels dodged 3 enemy torpedoes. Our casualties consist of a 
few wounded; the vessels suffered no damage. For battle report see 
Telegram 2140. 

Mine-sweeping planes swept 2 and mine-exploding vessels 4 ground 
mines. 

Special mission "Fuenfte Kolonne" was carried out according to 
plan. 2 more mines were swept on the approach routes. Convoy and 
patrol service! _'_ proceeded on schedule. 



2. 



Norway and Arctic Ocean : 

§ 
Enemy Situation : 

Air reconnaissance sighted 5 medium-sized steamers, 1 
destroyer, and 2 patrol vessels off Archangel which proceeded on a 
southeasterly course in the western channel; also 2 single ships 
were spotted. On 24 Aug. 4 destroyers, 2 of them under construc- 
tion, 5 escort vessels, and 28 steamers were observed at Archangel, 
while 4 escort vessels and 5 steamers were spotted outside the 
harbor. 

60 to 70 fishing vessels were sighted north of Iceland. 

Own Situation : 

During the afternoon of 24 Aug. an eastbound convoy 
was attacked with 2 torpedoes by an enemy submarine south of • 
Kiberg; both torpedoes missed. During a subsequent subchase the 
submarine was probably destroyed on 25 Aug. 

A Russian battery on the Rybachi Peninsula fired on an eastbound 
convoy and on the Petsamo harbor area on 24 Aug. without causing 
damage • 

The submarine chase on the west coast was continued in quadrant 
AN 3167. Enemy planes operated over the north and west coast 
during the day and the night of 24 Aug. Convoy service proceeded 
uneventfully. 

The Commanding Admiral, Fleet and his staff aboard the HELA 
transferred temporarily on 26 Aug. to Germany. The Commanding 
Admiral, Cruisers as ranking naval commander in the north area 
takes his place in the meantime. (See Telegram 1520.) 



-305- 



CONFIDENTIAL 



25 Au~. 1942 



As reported by the Commanding Admiral, Norway, the construction 
of an anchorage for large vessels at the eastern shore of Kaa 
Fjord would not serve the purpose, because anti-torpedo nets do 
not stand up in the rough waters there. Investigation is under 
way as to whether the anchorage could be shifted to the western 
shore. 

Submarines U "255'* and U "456" are reconnoitering the area to be 
mined in operation "Zar". 

Submarine U "435" picked up the "Knospe" expedition and is return- 
ing to Narvik. The boat found the area north of Spitsbergen ab- 
solutely free of ice. 

Results of air reconnaissance in the Archangel area (see Aerial 
Warfare) are transmitted to the participants of operations 
"Wunderland" and "Zar" by the Admiral, Arctic Ocean. 

En route to operation "Zar" mine layers were reported by submarine 
U "488" in quadrant AD 9835 as "unidentified ships". Beyond any 
doubt a case of dangerous neglect to inform ships at sea adequately, 

Nothing has. yet been heard from operation "\7 under land". 



IV. Sk^errak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

Finnish reconnaissance reports sighting gunboat KRASNOYE 
SNAMYA on 24 Aug. in the northern bay of Lavansaari. 



2. 



Own Situation: 



The German steamer PETER VON DANZIG (850 GRT), carrying 
a cargo of gravel struck a mine off Samsoe and sank. This in- 
dicates the presence of mines with time delay mechanism, since 
this route is checked frequently, ^he same applies to the mine 
struck by the transport V/URI. As a consequence of this loss and 
the experiences had on the occasion, Group North requested the 
Shipping and Transport Branch of the Naval Staff Quartermaster 
Division to set up an organization which would permit quick iden- 
tification of personnel involved in accidents of troop transports. 

Ground mines were swept near the spot where the PETER VON DANZIG 
sank. 

Nothing to report from the area of the Commander, Mine Sweepers, 
Baltic Sea. 



-306- 



CONFIDENTIAL 
25 Aug. 1942 



-■i_> i 



V^ Submarine Warfare 

1, Enemy Situation ; 

Air reconnaissance intercepted an RRR signal of the 
Norwegian steamer WASHINGTON EXPRESS (3,543) from approximately 
480 miles southeast of Newfoundland. 

2. Own Situation : 

8 submarines en route from Germany are combined to form 
group "Vorwaerts" in the North Atlantic and are ordered to assume 
positions on a patrol line extending from quadrants AK 3765 to 
AK 6629. The group will operate against convoys from the British 
Isles to America. 

Bad weather forced abandonment of operations against the convoy 
in quadrant BD. The results achieved so far consist of: 

A 7,000 GRT steamer sunk and 2 steamers of 6,000 GRT and 3,000 GRT 
torpedoed by submarine U "138". 

A 6,000 GRT steamer torpedoed by submarine U "176" and a medium- 
sized steamer probably sunk by U "605". 

In adjacent waters a single steamer of 12,000 GRT w as sunk in 
quadrant AK 9454 by submarine U "604". 

The boats operating on the U.S. east coast had no successes to 
report. Group "Bluecher" spotted a convoy probably convoy SL, 
In quadrant DH 1543 and is now operating against it. 

In the area off Freetown submarine U "130" sank steamer VIKING 
STAR (6,445 GRT) in quadrant ET 6446. 

For further reports see supplement to submarine situation in 
War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 

A few of our planes made nuisance raids on coastal 
places during 25 May and the following night. 

The enemy penetrated during the day into Germany and damaged 
several industrial plants in the Cologne district. 

2. Mediterranean Theater ; 

Nothing to report. 
\ 

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25 Aug. 1942 



3. Eastern Front ! 

In 2,787 sorties we lost 5 planes and shot down 100 
enemy planes. Reconnaissance flights in the Black Sea and the 
Caspian Sea. In the Arctic Ocean the Varlamovo airfield was 
attacked by 14 Ju 88' s with observed good results. 

Special Items : 

In view of the expected commissioning of aircraft carriers the 
Air Force General attached to the Nerval High Command has ordered 
the organization of the necessary units. For the GRAF ZEPPELIN 
a group staff with 3 multi-purpose groups, 2 carrier-borne 
fighter groups including torpedo planes, and .a ship-based air 
command is to be organized by 1 Mar. 1943; a replacement group 
with group staff, one multi-purpose squadron, and one fighter 
squadron is to be organized by 1 May 1943. 

Considering that this is a new field as far as the Air Force is 
concerned and that it is necessary to channel all experiences 
gathered by the carrier-borne air forces to a single agency, 
evaluate such information, and send it directly to the zones of 
operation, it has been suggested that the office of an advanced 
training commander for carrier-borne forces be created at the 
Air Force Operations Staff. 



VII. V/arfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

The Italian Consul at Oporto sent an agent report ac- 
cording to which extraordinary military activity is going on at 
Gibraltar, which seems to indicate that the British plan a land- 
ing at an undisclosed place. The date named for this operation 
v/as 26 Aug'. This report evidently originates at the sar.e source 
as the one reported on 24 Aug. by the Italian Naval Intelligence 
Division. (See War Diary 24 Aug.) 

The German Naval Command, Italy takes the following stand* 

"Although it must be expected that the British are planning op- 
erations which are motivated by military considerations alone, 
the operation mentioned is considered very unlikely because It 
lacks a strategic goal and because its political repercussions, 
particularly in the event of a failure, would be too grave." 

This conclusion conforms to the opinion of the Naval Staff as ex- 
pressed on 24 Aug. 

According to an intelligence report from Spain, a Spanish steamer 
reported sighting an aircraft carrier and 7 destroyers at 36° ILy 
7° W proceeding on a southerly course and 16 steamers headed for 



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CONFIDENTIAL 
25 Aug. 1942 

the Strait of Gibraltar at 0900 of 24 Aug. This evidently re- 
fers to the aircraft carrier which sailed from Gibraltar during 
the night of 23 Aug. and to the convoy which arrived there in the 
afternoon of the same day, although only 8 incoming steamers were 
reported. 

Prom another intelligence report from Spain it is learned that 
lively air activity was observed on 25 Aug. over the Portuguese 
south coast and extending as far as Gibraltar. 

No other news of importance was received from the entire Mediter- 
ranean. 

2. Own Situation, Mediterranean ; 

Enemy planes attacked Marsa Matruh, Tobruk and the harbor 
of Corfu in the evening and during the night of 24 Aug. 

3. Transport of Supplies to North Africa : 

Supply transport from Italy and Greece to North Africa 
and North African coastal traffic proceeded according to plan 
and without major incident. 

* 

Volume of goods unloaded at Tobruk on 23 Aug. amounted to 544 tons, 
on 24 Aug. 1,045 tons; at Marsa Matruh 307 tons on 23 Aug. and 245 
tons on 24 Aug. 

4 

4. Area Naval Group South ; 

Aegean Sea ; 

Tanker CELEN0 had to put into Mudros harbor on the 
Way to the Dardanelles on account of engine trouble. Otherwise 
supply transports and convoys in the Aegean Sea proceeded ac- 
cording to plan. 

The Admiral, Aegean Sea requests urgently that the number of • 
Spanish steamers be augmented, since they proved v,ery useful for 
Crete shipping and are safe from submarines. Group South supports 
this proposition urgently. 

The matter will be taken up by the Shipping and Transport Branch 
of the Naval Staff Quartermaster Division*. 

Black Sea : 

Enemy Situation : 

Lively submarine activity was observed by radio monitor- 
ing; altogether 21 submarines were located, 8 of them in the 
western Black Sea. The Fleet Commander was at sea in the Batum 
area at noon. Air reconnaissance established in the morning of 
25 Aug. that 2 more steamers had entered Novorossisk and also 
sighted a convoy sailing from Tuapse in a southeasterly direction. 



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CONFIDENTIAL 
25 Au/t. 1942 



According to the Naval Attache at Istanbul, a well-informed source 
reports that great quantities of provisions, ammunition and fuel 
are stored at Batum to supply the Russian fleet in the event that 
the Caucasian ports must be evacuated, 

Ovvn Situation : 

The fact that 17 Russian mines and cutter floats were 
swept by the Crimean^ minesweeper detachment proves that the closed 
area west of Sevastopol was Sriined. A mine-sweeping plane swept 2 
mines off Yeisk. 3 anti-torpedo barrages were laid off Ivanbaba. 
Supply transport and convoy shipping proceeded according to plan 
without major incidents. 

Submarine DELFINUL is to be ready for operations by 1 Sep. 



VIII. Situation East Asia 

The Naval Attache at Tokyo reports the situation in the 
Solomon Islands unchanged. Enemy supply operations which were 
carried out at first only by submarines are now executed by 
destroyers and steamers, too. An enemy destroyer was sunk on 
22 Aug. by Japanese destroyers which penetrated into Lungarodo 
Bay. 

At 1430 on 24 Aug. an enemy force consisting of 1 battleship, 
2 aircraft carriers or auxiliary carriers, 6 cruisers, and 12 
destroyers v/as attacked by Japanese carrier-borne planes south- 
east of the Steward Islands. Fires were observed on both air- 
craft carriers, which are of a type unknown thus far to the 
Japanese Navy. The Japanese allegedly suffered no losses. 



IX. Army Situation 

1. Russian Front ; 

Army Group A : 

The 3rd Rumanian Army captured the peninsula west of 
Temryuk. A Rumanian cavalry division, advancing in a southerly 
direction, crossed the Kuban River at Protskaya. The enemy at- 
tacked the spearheads of our advancing V Army Corps and was re- 
pulsed in bitter hand-to-hand fighting. Southwest and south of 
Krasnodar enemy counterattacks launched from the mountains were 
also repulsed. Our operations in the mountains are progressing 
steadily against occasionally stubborn enemy resistance. 

Army Group B : 

The battle for Stalingrad continues. At the juncture 
of the Khoper and Don Rivers the western flank of the XVII Army 
Corps suffered a setback due to further withdrawal of the Italian 

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( 



> 



CONFIDENTIAL 
25 Aug. 1942 

forces. Our reserves have been thrown into battle. 

Central Army Group : 

All enemy attacks In the area south 'of Sukhinichl were 
repulsed, partly through counterattacks. We succeeded In hold- 
ing— our positions in the Rzhev area. Enemy preparations for re- 
newing his attacks were dispersed by artillery fire. 

Northern Army Group : 

Enemy attacks southeast of Schluesselburg and south of 
Leningrad were smashed before they could get under way. 

2» Finnish and North African Fronts : 

Nothing to report. 



> 



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CONFIDENTIAL 
26 Aug. 19l|2 

Items of Political Importance 

Concerning the Shipping Problem ; 

The Times • published a survey of submarine warfare in the western 
Atlantic and particularly off the North American coast, stating 
that the ships sunk still exceed those newly built. This should 
Impress the Allies' with the fact that the battle of the Atlantic 
is one of the vital ope rati dni of the war. 

Great Britain ; 

On 22 Aug. Churchill declared in a press conference at Cairo 
that Great Britain is determined to fight for Egypt and the 
Nile River estuary as if they were England's own soil. 

Efforts of British trade union leaders to merge American, British 
and Russian unions and labor organizations failed completely. 
For details see Political Review No. 199, paragraph 3c 

U.S.A. ; 

Reuter reports from Washington that a new Lend Lease Agreement 
between the U.S.A. and Great Britain is about to be announced. 
Corresponding agreements with Australia and New Zealand are in 
preparation. A new agreement had to be drawn up because U.S.A. 
forces in British territories must be supplied. 

Roosevelt invited the Prime Ministers of South Africa and Australia 
to Washington. 

According to a diplomatic report based on the travel impressions 
gained by a neutral authoritative source, the personal advisers 
to the President are playing the most important role in the U.S.A. 
next to Roosevelt. These men have dictatorial powers over the 
matters under their control. Hatred of Japan, enemy no. 1, is 
said to be beyond description and ineradicable. Germany merely 
has to be cured of her pathological craze for conquest. In order 
to crush Japan, the war in Europe must first te finished by 
exploiting the full war potential. Economically the country is 
going through a tremendous boom period. 

Uruguay ; 

According to Reuter, the Government denied that Uruguayan 
planes participated in an attack on Axis submarines as was 
reported from Rio. 

Russia ; 

According to the German Legation at Helsinki the Finnish envoy 
to the Vatican transmitted the following views of his Japanese 
colleague; 

1. Russia's offensive power is broken. 

2. The war in Russia will end during the month of October with- 
out a formal peace. 

3. The U.S.A. is Japan's enemy no. 1 and all forces must be 
concentrated against her. 

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CONFIDENTIAL 



26 Aug. I9I+2 



I4.. Japan can aaalat her allies solely by harassing enemy 
supply traffic* 

5. The U.S.A. will concentrate her forces on Germany first, ' 
and will attack Japan only in 19^5 • 

6. Japan is not interested in a prolonged European war. 

The Finnish Envoy concluded that the Japanese Envoy wanted to 
make him understand that a Japanese offensive against Russia 
is not imminent. 

The fact that points 3 and 5 coincide with the 
views expressed in the previously mentioned 
diplomatic report about the U.S.A. is noteworthy. 

According to reports from military circles in London, General 
Auchlnleck will become Commander in Chief of an Anglo-American 
Army which will operate jointly with the Russians in the 
Caucasus. The principal objects of the Allied Forces in Iran 
and Iraq under General Wilson are to protect the supply routes 
to the Russian Caucasus Army and to organize the British and 
U.S. defense south of the Caucasus. 

Turkey ; 

According to the official German News Agency (DNB), the President 
emphasized In a speech the cautious Turkish attitude toward < 
both of the belligerent parties. 



Special Items ; 

I. The Chief, Naval Staff is at the Fuehrer Headquarters for 
a report. 

For his report and the Fuehrer's decisions see l/Skl I b 663/14-2 
Gkdos. Chefs, in War Diary, Part C, Vol. VII. 

Of particular interest ; The Fuehrer refused to grant the requested 
permission for operations by cruiser SCHEER in the Atlantic during 
the winter. 

II. Due to past experience in naval reporting, particularly that 

of 19 Aug. during the Dieppe raid, the Naval Staff makes the follow- 
ing request of Naval Groups West, North and South, the German 
Naval Command, Italy, and the Fleet: Until the revised regulations 
concerning the Navy's reporting system are issued, the above com- 
manders are requested to take whatever steps are necessary to speed 
up transmission of observations and reports. 

For copy of this directive see l/Skl I a 20616A2 Gkdos • in War 
Diary, Part B, Vol. V. 

III. After investigating the possibility of using planes 
systematically in order to make cruiser warfare against merchant 
shipping safer and more effective, the Naval Staff Operations 
Division reached the conclusion that future developments must 



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CONFIDENTIAL 



26 Aug. 19i;2 



aim, not at a cruiser equipped with ship-borne planes, but at 
an aircraft carrier with adequate armament. During subsequent 
discussions of the relative merits of battleships and air craft 
carriers, the Naval Staff Operations Division states that it is 
too early to say that possible future developments in planes 
jeopardize the usefulness of the heaviest and costliest battle- 
ships. The tasks of the two types of ships must be clearly differ- 
entiated, and further developments in ship construction must be 
undertaken with this in mind. The battleship Is for combat 
with guns, the ai-rcraft carrier for operations involving planes. 

A detailed analysis by the Planning Branch, Naval Staff Operations 
Division which will serve as a basis for future discussion of this 
problem is contained in War Diary, Part B, Vol. V. 



Situation 26 Aug. iql+2 

I. War in Foreign Waters 

1. Enemy Situation : 
Nothing to report. 

2. Own Situation ; 

No reports were received from our ships in foreign 
waters. 

Enemy situation report by Radiograms 02ll| and l829» 



II. Situation West Area 

1. Enemy Situation ! 

An Intelligence report from Portugal reveals that 3 
British steamers escorted by a corvette left the Tejo River mouth 
during the night of 25 Aug. in a southerly direction. On 25 Aug. 
a steamer under Panamian flag left Lisbon for Durban. 

Air reconnaissance sighted 30 steamers on a northeasterly course 
proceeding in the forenoon in the waters southwest of Ireland. 

2. Own situation ; 

Atlantic Coast : 

Nothing to report. 

Channel Coast ; 

A group of the 38th Mine Sweeper Flotilla was bombed 
and strafed by enemy planes off Gris Nez shortly after midnight. 

Otherwise nothing to report. 

Special Items : 

a. The Commander, PT Boats reports that 2 additional PT boat 

-31I+- 



CONFIDENTIAL 
26 Aug. 191+2 

crews can only be assigned to the 1st PT Boat Flotilla, in order 
to permit the commissioning of 2 more vessels which he himself 
considers -necessary, at the expense of the flotillas operating in 
the west area. 5 vessels of the 6th PT Boat Flotilla will 
probably have been overhauled by the middle of September and 
another 3 vessels by 25 Sep. The Commander, PT Boats reports fur- 
ther that the defensive tasks in the west area require that the 
5th PT Boat Flotilla remain in the Channel area proper (Cherbourg), 
and that consequently again only 9 to 12. boats of the 2nd and 
14th PT Boat Flotillas will be available in the principal zone 
of operations, the Hoof den area. The Commander, PT Boats there- 
fore requests, that he be permitted to use the vessels of the 
6th PT Boat Flotilla from Ijmuiden in the Hoofden area as they 
become ready. Preparations for transfer of this flotilla in case 
of unforeseen developments in the Gulf of Finland continue. '(See 
Telegrams 1135 and 1205* ) 

b. Group West welcomes the plan of the Commander, Destroyers 
to assign torpedo boats T "17", T "18", and T "19" to the 5th 
Torpedo Boat Flotilla in the west area. (See Telegram 2330.) 

c. Maps of the British General Staff captured during the Dieppe > 
raid reveal that the enemy was so well acquainted with the location 
of our flanking anti-invasion barrages in the Channel that his 
landing barges were routed directly through the gaps. The British 
operations plans were worked out on 16 Jul. The minefields 
traversed, by the enemy were not laid until 20 to 22 Jul. at a 
alight distance from the planned location. Announcements of- the 
closed areas by the Admiral, French Coast were made on 13, 20 and 
21 Jul., generally speaking after the enemy plans had been worked 
out. It must thus be strongly suspected that the enemy learned 

on 16 Jul. at the latest of the plans which Group West made known 
to the Naval Staff only on 17 Juil This assumption necessitates 
a renewed check and intensification of all security measures and 
requires, in addition, that the minefield gaps be closed. This, 
by the way, has already been suggested by the Commander, PT Boats, 
too, for different reasons. 

Group West receives a corresponding directive -by the Naval Staff, 
with copies to Group North and the Counter Intelligence Section 
of the Intelligence Division, Armed Forces High Command. For 
copy of order see I E I653/I+2 Gkdos. Chefs, in War Diary, Part 
C, Vol. VI. 



III. North Sea, Norway, Arctic Ocean 

1. North Sea : 
Enemy Situation : 
Nothing to report. 

2. Own Situation : 

An enemy air attack on one of our convoys north of 
Ameland was repulsed at 23IO of 25 Aug. 

On 26 Aug. mine -exploding vessels and harbor defense boats 

, -515- 



CONFIDENTIAL 
26 Aug. 19 42 

swept 9 ground miner, in the 3orkum area, and a nine sweeper and a 
nine-sweeping plane each swept one more off Zeebruegge. Enemy 
reconnaissance in the afternoon over the coastal area of the 

German Bight . 

British radio broadcasts on 22 Aug. reported that 14 Danish trawlers 
were captured, probably at the Doggerbank, and the Danish llavy 
Ministry had word that a Danish cutter was sunk on 18 Au"3» in 
quadrant AN 3757 supposedly by a British destroyer; in view of these 
reports Group North requests that the Operations Staff, Air Force 
be asked to have the 3rd and 5th Air Forces reconnoiter the Dogger- 
bank area more frequently and to direct them to destroy oil fish- 
ing vessels encountered beyond the areas assigned to German and 
neutral fishing vessels. The Group expects that these measures 
will restrain the activities of enemy warships and protect the 
German fishing industry. 

The Naval Staff is following this matter up. 

2. Norway : 

Enemy Situation : 

The Armed Forces Intelligence Service transmits a 
communication of the Reich Central Security Office of 26 Aug. 
concerning a report from a reliable agent and member of the 
Polish resistance -movement according to which a British-American 
landing attempt is to be made in Norway between 28 Aug. and 
3 Sep. 

Own Situation : 

On 22 Aug. and 15 Aug. a Russian battery on Rybachi 
Peninsula fired unsuccessfully at German westbound convoys 
and also at the Army Coastal Battery "454" where it scored a 
hit on the barracks. • 

The Commanding Admiral, Fleet sailed on board the HELA from 
Trondheim in a southerly direction with escort vessel F "1" 
and motor mine sweepers R "64" and R "58". 

A submarine chase in quadrant AN 3161 was unsuccessful. Convoy 
service proceeded according to plan. 

The Commanding Admiral, Norway reports that because of the 
depth of the' water it is impossible to lay the minefields south 
of minefield 1 and off Lister, as proposed by Group North (see 
War Diary 24 Aug.). Submarines will have to be combatted in 
these areas by permanent subchaser patrols. The Commanding 
Admiral, Norway suggests 2 additional minefields in the Feie- 
stein area, namely a minefield 3a between minefields 3 and 4 
and a minefield 6 north of minefield 5. The Commanding Admiral, 
Norway cannot agree with the objections of the Commanding Admiral, 
Fleet (see War Diary 24 Aug.) with regard to the location of the 
minefields and the latter ' s suggestion for a new anti-submarine 
barrage off Stavanger and refers in this connection to the war 
experiences of the Naval Staff Operations Division outlined in 
its pamphlet "Mine-laying* Tactics No. 10". For details see 
Telegram 1810. 

Because of the transfer of the 6th PT Boat Flotilla from the 

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CONFIDENTIAL 
26 Aug. I9I4.2 

Norwegian area to Germany, the Naval Staff Operations Division 
demanded on 28 Jul. that tender LUEDERITZ serving as radio relay 
station be replaced at once by a land relay station or by another 
vessel. Following study of this request by the Chief, Naval 
Communications Division, on 26 Aug. ,> the Fleet Branch of the Naval 
"Staff Quartermaster Division assigned the METEOR to take the 
place of the LUEDERITZ. The latter can be withdrawn only after 
the METEOR is ready to sail. It is still being investigated 
whether the task could be taken over later on by the Vardoe 
radio station. 

• The Naval Staff Operations Division regrets to 
state that the LUEDERITZ has not been released, 
as was urgently demanded^ even though a month has 
elapsed. 

3. Arctic' Ocean ; 

Enemy Situation : 

Radio monitoring intercepted a report from a British 
ship sailing approximately 105 miles south of the South Cape 
at 18 knots, course 2J4.5 , that she was being followed by a 
shadower. 

At O9I4.5 air reconnaissance sighted 3 British destroyers in quadrant 
AB 3855 proceeding at 15 knots on a 270° course. Submarine U "88" 
reported the same destroyers in quadrant AB 39^5 on an easterly 
course disappearing from sight. An inquiry resulted in the state- 
ment that the enemy's last reliably established course was south- 
westerly and that the reported easterly course was based on 
assumption. At 1025 air reconnaissance reported 1 cruiser and 
2 destroyers on a westerly course in quadrant AB 373&. It; * s 
not clear whether these reports refer to a single or to 2 different 
forces. 

At IOI4.5 air reconnaissance sighted 5 steamers and 3 escort vessels 
on a northerly course at the White Sea entrance. 

The radio intercept service of the Air Force intercepted an order 
of the Air Force Commander of the Arctic Fleet to the 95th Air 
Force Regiment calling for air protection of a convoy and for 
escort forces consisting of 2 destroyers and 1 escort vessel; 
this convoy which sailed at 1800 on 25 Aug. is expected, to be at 
700 58' N,f|8 13' E on 27 Aug. It is to be picked up by the air 
escort at dawn on 26 Aug.; the destroyers are to be escorted on 
their return voyage. Bduvaya Guba was mentioned as the point of 
departure or destination of the convoy. 

Own Situation : 

The Naval Staff Operations Division assumes for the 
time being that a convoy sailed at 1800 on 25 Aug. from Bdushya 
Bay, and it will be at 700 58' N^ 03 ' B (sic, Tr.N.) on 27 Aug., 
and relays this assumption to Group North and the Admiral, Arctic 
Ocean, adding that no further information is available. (See 
Telegram 2338.) 

The Commanding Admiral, Norway points to the possibility that the 

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CONFIDENTIAL 
26 Aug. 19i+2 

announced convoy is Identical-. with the one sighted at the White 
Sea entrance at IOI4.5 • Further investigation is required. 

Submarine U M 209" reported that ice damaged her periscope -when 
she surfaced. Submarine U "255" reported that the Sheranyia 
radio station was destroyed on 25 Aug. at OJ4.3O. No radio communic- 
ation was observed. 

At 23U9 the Admiral, Arctic Ocean directed the ULK to lay the 
minefields north of 75° N and east of 63° E only upon special 
order so as not to endanger the SCHEER and submarines which are 
on their way back; the ULM is to report the receipt of this order 
by short signal indicating her position as of 2200 on 26 Aug. 

No reports were received from operations "'Sunderland" and "Zar". 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Baltic Sea Entrances and Western Baltic Sea : 

The German steamer DRAN ran aground off Hesseloe in 
the evening of 25 Aug. but was refloated during the forenoon 
of 26 Aug. A ground mine was swept at the northern entrance 
of the Great Belt by a mine-exploding vessel. On 25 Aug. a balloon 
which carried approximately 1/2 cu. m. of explosive was salvaged 
in the Kattegat. 

A convoy of 5 steamers proceeded from Oslo via Vasa to Jacobstadt 
according to plan. 

The fact that steamer HEINRICH VON PLAUEN struck a mine south 
of Pillau led to the discovery of ground mines there. The threat 
from ground mines In Danzig Bay caused Group North to order a check- 
sweep of the submarine training areas. For the corresponding 
directive to Baltic Naval Command see Telegram 1713* While it is 
not possible at this time to increase the number of minesweepers 
in the area of the Baltic Naval Command, the latter is advised 
to withdraw a few vessels from the western Baltic Sea even though 
channel-sweeping operations in that area will be delayed thereby. 

2. Eastern Baltic Sea : 

Enemy Situation : 

A total of 6 submarines were sighted or located by the 
radio Intercept service in the eastern part of the Gulf of Finland, 
Lively activity of PT boats, motor minesweepers and patrol vessels 
in the "Seei~el n area as well as the appearance of the KRASNOYE 
SNAKYA indicate in Group North's opinion that the submarines are 
getting ready for a breakthrough. 

According to testimony of war prisoners, torpedo boat T "20I4." and 
a minesweeper or patrol vessel were destroyed during the night 
of 23 Aug. in the "Seei.pel" area between Vigrund and Tyttersaari. 
Finnish air reconnaissance sighted a 10 mile oil slick in mine- 
field "Seehund 10"; wreckage and equipment in minefield Ontajaervi, 
including a case of Russian explosive cutter charges, were salvaged. 
This indicates at least 2 more successes due to mines. 



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CONFIDENTIAL 
26 Aug. I9I4.2 

Own Situation: 



Minefield "Seehund VI" has been laid. Subchaser "1216" 
was torpedoed by an enemy PT boat and sank off Vikallagrund. 1 
officer and 17 men were rescued. 

Convoy and mine-sweeping operations proceeded according to plan. 

The Commander, Mine Sweepers reports that the 1st Air Force 
has only 9 fighter planes available in the area between Orel 
and the Gulf of Finland; they are based on an airfield 220 km 
from the Gulf of Finland. Group North requests that at least a 
few fighter planes be assigned to the Gulf of Finland if the 
land situation permits their transfer. 

The Naval Staff is taking up the matter with the Air Force 
Operations Staff. Russian planes dropped German language leaf- 
lets in the Helsinki area, inciting German sailors to mutiny. 



V. Submarine Warfare > 

1 • Enemy Situation : 

The British steamer PORT JACKSON reports that she was 
fired on by a submarine 330 miles southwest of Porcupine Bank. 

Otherwise numerous submarine warning signals from the U.S. east 
coast and the West Indian waters. 

2. Own Situation ; 

The operations of Group "Loss" against the convoy in 
the central North Atlantic were called off. The submarines 
are ordered to take on supplies. 

No successes were reported from off the American coast. 

In the Caribbean Sea, a 3*500 GRT steamer was sunk in quadrant 
EC II96 by submarine U "558". 

Groups "Bluecher" and "Eisbaer" are operating against a convoy in 
quadrant DH proceeding on a northeasterly course, out of which 
steamer CLAN MACWHIRTER (5,9)4.1 GRT) was sunk by submarine U "I56". 

Submarine U "I30" of the Freetown group sank steamer BEECHV-00D (i+,897 
GRT) in quadrant ET 6715* Secret instructions taken from her 
captain concerning the shipping route from Capetown to Freetown 
confirm information in the possession of the Naval Intelligence 
Division, Foreign Merchant Marine Branch. 

No news was received from the Mediterranean. 

For additional reports see supplement to submarine situation in 
War Diary, Part B, Vol. IV. 



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CONFIDENTIAL 
26 Aug. 19U2 

VI. Aerial Warfare 

1. British Isles and Vicinity ; 

During the day fighter bombers raided Eastbourne. 
During the nigh,t pf 26 Aug. 17 planes attacked Colchester, 2 
other places near^Dover, and a convoy east of Harwich with un- 
determined results. 

50 enemy planes penetrated into Germany from the east and reached 
the Memel, Berlin, Torgau Gruenberg. Gnesen, Ortelsburg line. 
Bombs were dropped on Berlin (Dahlem), Stettin, Koenigsberg, and 
Danzig. See daily situation for a report of the damage. 

2. Mediterranean Theater : 

Reconnaissance and escort activity. Fighter bombers 
attacked gun emplacements and motor vehicle concentrations at 
El Alamein and Uweisat. 

3. Eastern Front : 

54. enemy planes were shot down at the various Army 
sectors. 

Reconnaissance activity in the Black Sea and the Caspian Sea, 
also in the Arctic Ocean. For results aee enemy situation 
reports under the respective headings. 

Special Item : : 

The Air Force Operations Staff submits a directive to the Air 
Force Group Command, Central Area and the 4th Air Force; it 
concerns the transfer on 27 Aug. of a mine-3weeping plane for 
temporary use by the 4th Air Force. All necessary arrangements 
to be agreed upon directly between the 4th Air Force and Naval 
Group South. 



I 



VII. Warfare in the Mediterranean and the B l ack Sea 

1. Enemy Situation, Mediterranean : 

The cruiser CHARYBDIS sailed from Gibraltar. 2 troop 
transports, one of 11,000 GRT, the other of 12,000 GRT, arrived 
from a westerly direction with troops under escort of 2 destroyers. 

According to latest aerial photos, the ILLUSTRIOUS-class aircraft 
carrier seems to be equipped with anti-torpedo nets when at sea. 
The German Naval Command, Italy will have the photos reexamined. 

Traffic in the eastern Mediterranean was light on 26 and 27 Aug. 
according to air reconnaissance. 

2. Own Situation, Mediterranean : 

Tobruk was attacked by enemy planes during the night of 
25 Aug. A gasoline supply dump was burned. Light enemy naval 
forces shelled the coastal road near El Daba during the same 
night. 

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CONFIDENTIAL 



26 Aug. 19 1+2 



3. Transport of Supplies to North Africa ; 

It Is "belatedly reported that the convoyed steamers 
OSTIA and OLYMPOS were attacked by an enemy submarine 10 miles 
north-northeast of Derna on 23 Aug. A subsequent submarine 
chase was unsuccessful. 

Transports to North Africa from Italy and Greece as well as 
coastal supply traffic proceeded according to plan. Italian 
submarines are again engaged In coastal supply transports. 

1+. Area Naval Group South ; 

Aegean Sea ; 

Enemy planes attacked the Corinth area. The Canal was 
slightly damaged but remained navigable. Aegean convoys proceeded 
without interference. The Admiral, Aegean Sea calls the attention 
of the Naval Construction Division to the confusion caused by 
contradictory orders regarding the 300 shipyard workers for Greece 
which were allocated on 8 Apr. I9I4.2, and announces that the 
Director of Ship Construction will personally intervene in this 
matter In Berlin. on 3 Sep. 

The Naval Staff fails to see why the execution 
of such a small matter, which Is, however, of 
greatest importance to the Navy, should take more 
than a year. 

Black Sea ; 

Enemy Situation ; 

Air reconnaissance spotted 3 southbound and a northbound 
convoy off the southeast coast. In addition, a heavy cruiser and 
2 destroyers were sighted at sea off Poti. No ships were at the 
ports of Novorossisk, Gelendzhik, Gagry and Adler, while 1 heavy 
cruiser, 1 light cruiser, 5 submarines, 2 minesweepers, the hull 
of a heavy cruiser, I4. tankers, and I4. steamers were at Batum. 

Radio monitoring revealed 7 submarines at sea, 5 °f them in the 
southwestern Black Sea. 

Own Si tua tl on ; 

On 2I4. Aug. a mine was swept in the outer harbor of Yeisk 
by a mine-sweeping plane. The Azov minesweeper group swept a 
moored mine outside the shipping lane at the southern harbor en- 
trance of Mariupol. A motor barge struck a minefield while* entering 
Yalta harbor during the night of 25 Aug.; she rammed and damaged 
a pilot vessel. The barge remained afloat and is maneuverable. 

Transport convoys in the Black Sea and the Sea of Azov proceeded 
according to plan. A total of lj.,817 tons was shipped between 2 
and 2I4. Aug. from Mariupol and Tanganrog to Azov. 



VIII. Situation East Asia 

The U.S. Navy Department announces that U.S. naval and air 
forces are engaged in a large-scale sea battle. They are 
endeavoring to repel strong Japanese forces which have 

-321- 



CONFIDENTIAL 



26 Aug. 19 1+2 



approached the islands southeast of the Solomons from a northerly 
direction. A number of hits were allegedly scored on several 
Japanese aircraft carriers, cruisers and battleships. So far, 
Japanese reports on this action have not been received. 



IX. Army Situation 

1. Russian Front : 

Army Group A ; 

Army Group Ruoff continued its advance against partially 
strong enemy resistance. 

Army Group B t 

The offensive toward Stalingrad from the north and south 
is progressing according to plan. All enemy attacks were repulsed, 
The situation at the breakthrough at the Italian division at the 
Don River was restored by throwing in reserves. At Voronezh we 
succeeded in dislodging the enemy from most of the suburbs. 

Central Army Group ; 

Enemy attacks at the Zhizdra River sector, which were 
carried out in some places with considerable forces, were re- 
pulsed with the effective assistance of our Air Force. In the 
Rzhev area, too, all more or less strong enemy attacks were 
repulsed. It appears that the enemy Is bringing up reinforcements 
and regrouping his forces at this sector. 

Northern Army Group : 

Enemy attacks on the land bridge to the II Army Corps 
were repulsed. 

2. Finnish Front : 

At the southern wing of the Murmansk front enemy assault 
detachments reconnoitered. 



5< 



North Africa: 



The enemy is reinforcing his positions by bringing up 
fresh troops. Air activity is lively. 



&XX*.t#X*-:'tw**## : *XXii*X%%'A*## 



-322- 



CONFIDENTIAL 



27 Aug. 1942 



Jtems of Political Importance 

Great Britain : 

Swedish correspondents report that all talk about the second front, 
has subsided in London, in spite or because of Dieppe. It is hoped 
that British and Amerioan operations in the Near East will help to 
-cushion the consequenoes of the Russian defeats, the extreme gravity 
of which is realized in London as well as in Washington. The Time s 
writes: "Neither the dress rehearsal at Dieppe nor the aerial of- 
fensive against the nerve centers of the German war industry were 
able to shatter the oonviotion that Britain's military effort is 
inadequate while Russia faces her worst crisis. 

Aooording to Reuter, the communist paper Daily Worker reappeared 
after it had been suspended for 19 months; also the paper The Week 
is being published once more. 

Franc e : 

According to diplomatic reports, large circles are said to be badly 
disillusioned as a consequence of the British failure at Dieppe 
and the conviction is growing that a final Anglo-American victory 
is impossible. 

Rumors reaching Stockholm from unoccupied France about an Allied 
landing at Dakar on 25 Aug. were denied by Vichy the same day. In 
this connection, discussion of Brazil's claims on French Guiana, 
instigated by the U.S.A., flared up once more. The Transocean 
News Agency reports that the U.S. Charge d' Affaires at Vichy con- 
ferred on this problem with Laval. 

Portugal: 

The Government supplied additional explanations to the German Govern- 
ment concerning its note to Brazil. For details see Political Review 
No. 200, paragraph 5. 

Syria : 

The Vichy Telegraphic Service (Ofi) reports that the tension between 
British and De Gaulle followers has become more acute. 

U.S.A. : 

A newly created joint U.S. and Brazilian defense commission is to 
coordinate all defensive measures and to take care of equipment, 
supply problems and fleet operations. 

Secretary of State Hull declared that no change of policy toward 
Martinique is planned, nor have new steps been taken with regard 
to the removal of the French warships from Alexandria. 

Argent jLna: 

It is learned from a diplomatic source that a separate division for 
national defense has been created within the Foreign Ministry, which 
is to cooperate with the two political divisions and with the War 
and Navy Ministries. The Government decree by which this new agenoy 
is created points specifically to the resolutions and recommenda- 
tions made with regard to Pan-American solidarity. 



-323- 



CONFIDENTIAL 
27 Aug. 1942 

Brazil ; 

The present relations between Japan and Brazil are termed by the 
official Japanese press as a "special form of neutrality"; in this 
connection it is pointed out that it will depend on Brazil en- 
tirely in what direction the relations will develop. Political 
circles are under the impression that Japan intends to tread cau- 
tiously, and that she seems unwilling to increase the tension be- 
tween the two countries. 

Chile ; 

According to a diplomatic source, the Axis Powers have warned Chile 
amicably but firmly that certain recent statements made by its 
Government cannot be reconciled with Chile's supposedly 100$ 
neutrality. The Axis Powers have made every effort to give merchant 
shipping in the South Pacific under the Chilean flag all possible 
protection, guarantees and concessions, though naturally reserving 
all the rights of belligerent nations accorded them by international 
law. In replying to -this protest, the Chilean Foreign Minister 
reiterated the extremely difficult position of his country and re- 
asserted that an attack on the Panama Canal or interference with 
shipping in the Paoifio would render it very difficult for Chile 
to maintain her neutrality. However, he hopes that the President's 
trip to Washington will be followed by a certain letup in foreign 
relations; in this connection he expressed the expectation that 
reaction might set in against U.S. domination of Chile. Well-in- 
formed German circles have little hope that domestic and foreign 
pressure on the government will ease. 

Uruguay ; 

The Foreign Ministry published the following decree: 

1. Due to prevailing conditions, the Government of Uruguay 
declares its complete solidarity with Brazil. It will consider 
Brazil a non-belligerent since she was driven into the oonflict 
by Germany and Italy. 

-2. In view of the geographic proximity of the two countries, 
Uruguay's national defense authority is authorized to seek an agree- 
ment with the Brazilian military authorities on all matters pro- 
moting effective joint protection against potential attacks. 

According to a British radio broadcast, the Government of Uruguay 
informed the Brazilian Government that its air and naval bases are 
at Brazil' 8 disposal. 



Special Items 

I. The Wilhelmshaven Armed Forces Intelligence Center transmits 
information from a British war prisoner who had served on the 
RODNEY. The report contains statements about the RODNEY'S part 
in the action against the BISMARCK on 27 May. 

For copy see l/Skl 291351/42 geh. in the War Diary. 



-321+- 



CONFIDENTIAL 
27 Aug. 1942 

II. Evaluation of information obtained by the radio decoding and 
intercept services during the period from 17 Aug. to 23 Aug. is 
contained in radio intelligence report No. 34/42 of the Chief, 
Naval Communications Division, Communications Intelligence Branch. 

With regard to the enemy landing at Dieppe on 19 Aug. , the begin- 
ning of this operation was unnoticed since radio silence was main- 
tained up to 0628 when the landing proper began. 

Considerably more information about Russian radio communications 
in the Arctic Ocean has become available. 



Situation 27 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 
North Atlantic : 

An agent reports sighting's convoy of 17 large U.S. 
troop transports under escort of 2 cruisers and 5 destroyers on 
19 Aug. on a southerly course 150 miles north of Madeira. 

South Atlantio : 

According to an intelligence report from Lisbon dated 
25 Aug. a large convoy consisting of 2 British and U.S. divisions 
is said to have sailed from Freetown on 18 Aug. and is expected 
in Egypt about the middle of September in time for the beginning 
of another offensive. Up to 21 Aug. this convoy had not yet passed 
through the Mozambique Strait. 

India: 

A Turkish agent reports that a convoy of more than 100 
6hips now en route is expected in Suez by the end of August. An 
RRR signal from a British steamer was intercepted from 50 miles 
southeast of East London, it was subsequently cancelled. The mes- 
sage said that "an unidentified warship is not following tne 
customary procedure". The Yugoslav steamer SUPETAR was sunk in 
the Mozambique Strait. Italian radio intelligence intercepted a 
British message, according to which the MADRONO (which has arrived 
at Yokohama in the meantime as a prize of ship "10") was either 
sunk or captured on 1 or 2 Jul. in the area 20° to 30° 8, 70° to 
87° E. 

2. Own Situation : 

The most important information up to 25 Jun. from the 
log of ship "28", which was forwarded by the Naval Attaohe at 
Tokyo, was transmitted to all ships in foreign water6 by Radio- 
gram 0638. 

The sinkings achieved by the auxiliary cruiser were mostly ef- 
fected by means of the light PT boat. 



-325- 



CONFIDENTIAL 
27 Aug. 1942 

Enemy situation report by Radiogram 0445. 



II. Situation West Area 

1. Enemy Situation : 

An intelligence report from Spain relates an agent's re- 
port from London of 18 Aug. according to which a large-scale land- 
ing operation on the Belgian coast originating from the Thames 
and its vicinity is planned for about 15 Sep. 70,000 men will be 
involved to this operation, 40,000 of them British volunteers. 

It is learned from an Intelligence report of S3 Aug. that convoys 
originating in America are 'assembled exclusively in Canada and 
that transports from the U.S.A. are sent there, too. At present 
2 convoys are being assembled which will first prooeed together 
to Iceland, from where one will proceed to the Russian Arctic 
ports and the other to the British Isles. According to this 
source at least 2 U.S. cruisers, which were previously at Ports- 
mouth, took part in the attack on Dieppe on 18 Aug. Portsmouth 
is said to be the center for commando operations and the main port 
of departure for the second front. More commando undertakings are 
said to be planned and to be in preparation now. 

2. Own Situation : 

Atlantic Coast : 

The harbor of La Pallice was reopened. 4 ships of the 
3rd Torpedo Boat Flotilla sailed from La Pallice at 1800 to ex- 
plore the shipping lanes in the Bay of Biscay. 

Channel Coast : 

PT boats S "77" and S "81" had an engagement with 6 
British motor gunboats from 0255 to 0308 20 miles west of Le Havre 
while proceeding from Boulogne to Cherbourg. For battle report 
see Telegram 0725. A hit on an enemy boat was observed. At 2310 
of 26 Aug. the 36th Mine Sweeper Flotilla shot down one of our own 
Ju 88 's between Ostend and Nieuport. 

At 0910 30 enemy single and twin engine fighters bombed and strafed 
the roadstead of Dieppe. Patrol boat VP "1509" was hit by 2 
bombs and towed sinking to Dieppe. A subchaser and another patrol 
vessel suffered damage and casualties. 2 of the attackers were 
definitely shot down, a third one probably. 



III. North Sea, Norway. Arctic Ocean 
1. North 8ea : 

Enemy Situation : 
Nothing to report. 

-?26- 



CONFIDENTIAL 
27 Aug. 1943 

Own Situation ; 

Escort and patrol services in the area of the Commanding 
Admiral, Defenses, North according to plan, without special in- 
cidents. 7 ground mines were swept. 

During an enemy air raid on Rotterdam the mine-laying ship COBRA 
at the Wilton shipyard was hit by a bomb at the forward end of the 
bridge and oapsized. 

2. Norway : 

Enemy Situation : 

According to an intelligence report based on information 
from .British diplbraatic circles at Lisbon, a British-American land- 
ing on the Norwegian coast between Narvik and Murmansk is expected. 
It is anticipated that 5,000 British and American planes will at- 
tack Germany by October. 

Own Situation : 

Nothing to report. 

3. Arctic Ocean : 

Enemy Situation : 

The order issued to the 95th Naval Air Force Regiment 
which was intercepted by the Air Force intercept service (see War 
Diary 26 Aug.) was studied once more by the Chief, Naval Communica- 
tions Division, Radio Intelligence Branch and is now interpreted 
as follows: 

The 95th Naval Air Force Regiment of the Russian Arctic Fleet, as- 
signed to convoy escort duty in Gorlo Strait at the end of July, was 
notified at 2300 on 25 Aug. that 1 patrol vessel and 3 ships 
thought to be freighters left an unidentified port at 1800 on 25 
Aug., and that 2 destroyers sailed from another unidentified port, 
bound for Beluyava Guba (Novaya Zemlya) . The route of the convoy 
would be from the Kanin Nos lighthouse to Beluyava Guba. speed 
18 knots. 2 destroyers would accompany the convoy to 70° 58' N„ 
48° 03' E (sic., Tr. N.) where they would arrive at 1100 of 27 Aug. 
and then return with 25 knots speed. The planes are to escort the 
convoy from dawn of 26 Aug. up to this point and thereupon escort 
the returning destroyers due to arrive at the lighthouse, probably 
the one on the east coast of Kola Peninsula, at 0100 on 28 Aug. 

The plausible version of the report is transmitted to Group North 
and the Commanding Admiral, Norway. 

At 0730 air reconnaissance sighted 1 steamer, 1 patrol vessel and 
3 lighters in Khabarova Bay (south of Novaya Zemlya). On 26 Aug. 
radio monitoring intercepted a message of a Russian radio station, 
probably that of Kanin Nos, according to which 5 freighters and 
3 minesweepers passed the station at 1650 on a northeasterly course 
and v/ere lost from sight at 2025 proceeding on the same course. 

According to radio intelligence, 6 to 8 British ships were located 
during the day and the night in the southern part of Gorlo Strait 
and in the Archangel area. 



-527- 



CONFIDENTIAL 
37 Aug. 1942 

Reconnaissance by planes south of Novaya Zeralya did not sight enemy 
forces. 

Own Situation : 

The situation analysis by Group North at noon of 27 Aug. 
considers among others also the possibility that the outbound convoy 
reported by the Air Force radio intercept service might be a de- 
parting PQ convoy. In this connection Group North refers to the 
British shiDS located in Gorlo Strait by radio monitoring. Tha 
Naval Staff believes that convoy PQ 18 is not en route. In the 
meantime several single ships on an easterly course were located 
in the area east of Bear Island; in view of their positions and 
course it may be assumed that they are heading- for Archangel from 
the west. There is no indication where the 5 steamers reported 
off Archangel came from. It is possible, though, that these ships 
come from northern Siberian ports, but there is also the possibility 
that they are transferring from Murmansk to Archangel. It is un- 
likely, however, that the ships are a convoy bound for Archangel 
from the west. 

For Group North's situation analysis see Telegram l/Skl 21119/42 
Gkdos. in file "Wunderland". 

The Commanding Admiral, Group North gave permission to the Admiral, 
Arctic Ocean to start operation "Wunderland" the evening of 27 Aug., 
provided there are no important reasons against it. At the same 
time the task force of the Commanding Admiral, Cruisers was placed 
on 3-hour readiness. 

No reports were received about operation "Zar". The order issued 
to the ULM to report her position is inadvisable, in view of the 
SCHEER operation. 

Special Items : 

a. In the Naval Staff's opinion, weather stations should be 
maintained in areas not regularly surveyed by air or naval forces 
only if other circumstances afford them a certain degree of pro- 
tection, for instance if they are ice-bound as was the oase in 
earlier similar undertakings. This possibility does not exist, 
however, in the case of Bear Island, which is ice-bound for only 

a short period every year. The Naval Staff Operations Division 
is therefore opposed to establishing a weather station on Bear 
Island as planned by the Intelligence Division of the Armed Foroee 
High Command and recommends trying to obtain the required informa- 
tion from this area by means of automatic weather reporting equip- 
ment. 

For copy of corresponding memorandum see l/Skl. I Nord 20975/42 
Gkdos. in War Diary, Part C, Vol. I la. 

b. Group North reports with reference to the Naval Construc- 
tion Division' 8 opinion of the seaworthiness of cruiser KOELN 

that cruisers on operations cannot necessarily seek shore protection 
in case of rough seas, and either this risk must be borne or else 
cruisers must not be operated outside the Baltic Sea and the 
Skagerrak. 



-528- 



CONFIDENTIAL 
27 Aug. 1943 

V 

If the latter alternative should be decided on, Group North re- 
quests that no more cruisers be assigned to the Arctic area or 
that they be used there for the sole purpose of repulsing enemy 
landing attempts. 



IV. Skagerrak. Baltic Sea Entrances. Baltic Sea 

No speoial incidents from the area of the Commanding Admiral, 
Defenses, Baltic Sea. 

Group North gave orders to remove the Swinemuende dummy barrage < 
which interferes with sweeping ground mines. 

Acoording to the Operations Staff of the Armed Forces High Command, 
the Fuehrer has ordered the reinforcement of the Danish coastal 
defenses along the lines of the Westwall. The work is to be done 
with the forces available there. No additional foroes are re- 
quired. The Commanding General of the German Armed Foroes in 
Denmark submitted a priority list. He proposes tnat the harbors 
of Esbjerg, Kyboroen and,Hirthals be reinforced first by con- 
struction of hedgehog defenses. The Naval Staff is requested to 
comment on this. plan. (See Telegram 1715.) 

4 

The Swedish Navy reported that a Finnish convoy was attacked on 

25 Aug. in the Aaland area by a submarine with 2 torpedoes which 
missed. The Naval Attache at Stockholm believes, that transports 
are supposed to proceed through Oeregrund and to be dismissed 
from their Swedish escort at Oresundsgrepen, the boundary of 
Swedish territorial waters. The Attache requests the Naval Staff 
to confirm his assumption and if necessary to repeat its directive 
that transports are to be handed over to the Finns at Simpnaes. 
(See Telegram 2115.) In view of the submarine menace in the 
Aaland Sea, Group North ordered that the escorts of troop trans- 
ports be reinforced by 3 ships of the 1st Mine Sweeper Flotilla. 

Ship "47 " proceeding from Memel to Windau was attacked In the 
eastern Baltic Sea north of Libau by a Russian submarine with 2 
torpedoes, both of which missed. The submarine submerged after 
being hit by gunfire. Depth charges were dropped, too, but 
results could not be ascertained. 4 fighter planes and 2 low- 
flying planes attacked the 3rd Mine Sweeper Flotilla, the latter 
dropping 2 aerial torpedoes which missed. Mine-sweeping and 
escort operations in the area of the Commander, Mine Sweepers, 
Baltic Sea proceeded uneventfully. 



V. Merchant Shipping 

1. Enemy shipping situation as of 1 Aug. 1942 

Fluctuations of the available tonnage were due ex- 
clusively to new constructions and losses, since additions by 
transfers and purchases ceased after the U.S.A. entered the war. 



-329- 



CONFIDENTIAL 
27 Aug. 1942 

In spite of rising ship building output, almost 675,000 GRT 
during July as against 230,000 GRT in January, the available enemy 
tonnage of 33,600,000 GRT on 1 Jan. 1942 deoreased to 30,400,000 
GRT on 1 Aug. owing to constantly rising losses. 

Enemy production figures are rising 

The Allied ship-building program for December 1942 calls for pro- 
duction of 800,000 GRT. Sinkings by submarines are also increasing 
since the beginning of the year. At this time no prediction can 
be made as to the future development of submarine warfare whioh 
must be considered the yardstick for the war on merchant shipping. 
If the Axis Powers can maintain the sinking figures at the level 
of the last months and if the enemy can fulfill his production 
program, the sinkings and replacements will be about the same by 
the end of 1942 > and the available enemy shipping space will have 
reached its lowest level around the end of 1943 or the beginning 
of 1943. 

A diagram of this development is contained in the "Foreign Merohant 
Shipping" report by the Naval Intelligence Division, Foreign Mer- 
ohant Marine Branch. 

2. With reference to the control of merchant shipping in 
the Baltic Sea, the Reich Commissioner of Maritime Shipping re- 
ported on 8 Aug. that the transport situation in the Baltic coun- 
tries no longer makes it necessary to take great risks; he there- 
fore proposes that ships be permitted to proceed singly (not in 
groups) and close to shore, provided adequate protection, pos- 
sibly by planes, can be given them. The Commissioner also re- 
quested that the various shipping authorities be informed in time 
when escort is to be provided in certain areas. 

The Naval Staff examined this matter together with Group North and 
the Baltic Naval Station, and ordered the Baltic Naval Station, 
the Commander, Mine Sweepers, Baltic Sea, with copy to Group North, 
to notify the Shipping Representatives at Stettin, Danzig, 
Koenigsberg, Libau, Windau, Riga, and Reval as early as possible 
about the time when escorts can be provided. The Reich Commis- 
sioner of Maritime Shipping has been requested to see that in- 
formation as to the convoy timetables is made known to as few 
persons as possible, and that secrecy is maintained. He was further 
informed that regular air escort cannot be provided and that hie 
proposal that ships proceed singly meets unanimous opposition from 
the operations zone, because traffic of supply and merchant ships 
to the Baltic countries in groups of 2 has proved very satisfactory 
for more than a year. The Naval Staff further requests the Reich 
Commissioner of Maritime Shipping to see that the number of orders 
issued to shipping at his request, many of which are contradictory, 
be cut down in order to avoid confusion. 



VI. Submarine Warfare 

1. Enemy Situation ; 

Radio monitoring located about 30 reconnoitering enemy 
planes 120 miles west of Brest. 



-530- 



CONFIDENTIAL 
2? Aug. 1942 

A submarine attack at the northern exit of the Belle Isle Strait 
was reported from off the U.S. coast. Submarine warning signals 
were intercepted from the Gulf of St. Lawrence, north of Nantucket 
Island, and the Gulf of Mexico. 

According to an intelligence report from Sweden the two convoys now 
being' assembled in Canada will sail from there this week and pro- 
ceed together as far as Iceland. 

According to an intelligence report from Spain, 3 British steamers 
with machine guns for airplanes and with 4-motored planes left 
Galveston (Texas) on 19 Aug. for Portsmouth (England) under escort 
of 7 U.S. warships. 

2. Own Situation : 

The only success reoorted comes from the waters north- 
east of Trinidad, where submarine U "leg" sank a 10,000 GRT tanker 
in quadrant EE 7312. 

Contact with the northbound convoy southeast of the Azores con- 
sisting of more than 20 steamers was maintained up to 1930. Group 
" Eisbaer" was ordered to abandon the operation, to form a patrol 
line from quadrants DH 1444 to DH 1664 by 0800 of 28 Aug. and to 
proceed south. « 

For additional reports see supplement to submarine situation in 
War Diary, Part B, Vol. IV. 



VII. Aerial Warfare 

1. British Isles and Vicinity : 

Folkestone was raided by fighter bombers during the day; 
hits in the target area were observed. 

During the night of 27 Aug. 23 planes attacked Leeds. 

2. Mediterranean Theater : 
Nothing to report. 

3. Eastern Front : 

101 enemy planes were shot down. 

Reconnaissance missions were carried out in the Black Sea and the 
Arctic Ocean. 

A Russian mine sweeper was severely damaged during an aerial attack 
on Lake Ladoga. 



-331- 



CONFIDENTIAL 
27 Aug. 1942 

4. Inoursions ; 

There were between 300 and 350 enemy Incursions during 
the night of 27 Aug. , about 300 of them over Germany. They pene- 
trated as far as Copenhagen, Danzig Bay, Stralsund, Lueneburg, 
Braunschweig, and Muenohen-Gladbach. The attack centered on Kassel, 
where heavy damage was inflicted. For details see daily situation 
report. 

Special Items ; 

a . In modification of the orier of 26 Aug. the Air 
Force Operations Staff directed the 3rd Air Force to transfer one 
of its mine-sweeping planes temporarily to the 4th Air Force at 
Mariupol no later than 27 Aug. The Air Force Group Commander, 
Central Area is ordered to transfer one of the Ju 52 mine-6weeping 
planes including its crew from his area to the 3rd Air Force. 

b. The Naval Representative on the Air Force Operations 
Staff reports that up to now 2 Ju 86 high altitude planes are being 
used for daylight attacks on England. They attack from an altitude 
of 13,000 m. On order of the Reichsmarschall the production of 
this model is to be speeded up as much as possible. So far no anti- 
aircraft defenses have been encountered over England at such alti- 
tudes. 

c. The Air Force Operations Staff assumes that the 6 
large merchant vessels seen at Archangel on 25 Aug. belong to a 
convoy from overseas. The 5 medium-sized steamers spotted on 

26 Aug. on the western shipping lane outside of Archangel may be 
a convoy from overseas, too. The convoys may have come from the 
west or from the east through the Northeast Passage. The Air 
Force Operations Staff is inclined to believe that the latter is 
the case and that the ships are parts of the large convoy ex- 
pected to arrive from the east. It is planned to intensify the 
attacks on ships and harbor installations of Archangel and to mine 
its harbor entrance. 



VIII. Warfare in the Mediterranean and the Black Sea 

1« Enemy Situation, Mediterranean ; 

The troop transports which arrived at Gibraltar on 26 
Aug. are said to have brought about 4,500 infantry and artillery 
men to relieve the Gibraltar garrison. The Italians expect that 
a convoy will sail from Gibraltar in the immediate future. 

The Italian Navy reports large British ships cruising off the 
French Morocco coast. According to an unconfirmed report, French 
air and naval forces have been alerted. 



-332- 



CONFIDENTIAL 



2 7 Aug. 1942 



Among other ships 4 submarines were observed at Valletta by air 
reconnaissance. It cannot be determined whether they are supply 
boats or whether the harbor is serviceable once more as a sub- 
marine base. 

Submarines were sighted off Cape Bon and off Navarino. 

No enemy situation reports were received from the eastern Mediter- 
ranean. Radio monitoring during the night of 26 Aug. intercepted 
reports from one of pur North Africa convoys which was shadowed 
and attacked by the British. 

2. Own Situation. Mediterranean : 

During the night of 26 Aug. Marsa Matruh was attacked by 
enemy planes and suffered slight damage. Tobruk was not attacked 
that night. 2 German PT boats arrived at Suda from Augusta. 

The Naval Staff requests the German Naval Command, Italy to re- 
port immediately what routes the British are believed to have 
sailed in the Strait of Sicily, both coming and going. The Naval 
Staff places particular value on the opinion of the German Naval 
Command, Italy on the following points: 

a. Were French territorial waters invaded, and if so where? 

b. Did enemy forces pass through the minefields outside of 
French territorial waters? 

c. What is the location of the minefield laid by the Italians 
during the night of 11 Aug. and what is the Naval Command's opinion 
about its effectiveness? 

On 20 Aug. the Naval Attache Rome reported on an interview with 
Admiral Riccardi, in the oourse of which tae latter commented on 
the outcome of the naval operations from 11 to 13 Aug. and on the 
destruction of the British convoy. In this connection Riccardi 
referred to a communication from the Commander in Chief, Navy 
according to which the minefield planned by the Naval Staff in 
French territorial waters in order to close the gap off Cape Bon 
was not to be laid; this change was allegedly brought about by 
new considerations just before the beginning of the British con- 
voy operation, although the project had previously been agreed 
upon between German and Italian political authorities. Neverthe- 
less Riccardi ordered the mine-laying operation, which had al- 
ready been started to be carried out. 

This version is undoubtedly erroneous. The Naval 
Staff 8 opposition to the operation was due to the 
fact that the Italians wanted to seal the French 
territorial waters without having any indication 
that a new convoy operation had begun, anticipating 
the approval of the political authorities. 

For copy of the report see l/Skl 21002/42 Gkdos. in War Diary, 
Part C, Vol. XIII. 

3. Transport of Supplies to North Africa : 

A number of deplorable losses of and damages to ships 
have been reported: 



-333- 



OONFIDENTIAL 
27 Aug. 1942 

The troop transport CAMPERIO was torpedoed and sunk by an enemy 
submarine at 0751 west of Crete, although she was prooeeding in 
oonvoy under escort of a destroyer and 2 torpedo boats. Details 
are not yet known. 

Steamer ISTRIA was sunk by enemy planes 60 miles off Ras el Tin. 

Tanker GE0RGI03 was damaged by several bomb hits. 

Steamer ARMANDO ran ashore at Caledia while proceeding from Palermo 
to Tripoli. 

On 25 Aug. 1,010 tons of material were unloaded at Tobruk in ad- 
dition to 773 tons from tankers; on 26 Aug. the respective figures 
were 1,184 tons plus 684 tons from tankers. 

4. Area Naval Group South : 

Aegean Sea : 

Because of mines allegedly located by an Italian torpedo 
boat, the waters northwest of the northwestern tip of Crete were 
closed to shipping. The Air Force was ordered to check on this 
report. Regarding the sinking of the CAMPERIO see preceding para- 
graph. Otherwise convoy operations in the Aegean Sea proceeded 
according to plan and without major incident. 

Blaok Sea ; 

Enemy Situation : 

Lively shipping off the Caucasian coast is interpreted 
by the Air Commander, Crimea to be connected with transports to 
central Caucasian ports. Reconnaissance of the Tuapse area re- 
vealed movements to the northeast toward Maikop. 

Radio monitoring established the cruiser KRASNY KRIM and the 
flotilla leader KHARKOV at sea under escort of 5 destroyers at 
unidentified positions. The Fleet Command op board an unidentified 
ship sailed from Batum during 26 May and was located during the 
night of 26 Aug. approximately 60 miles off Ochemchiri in company 
of 4 destroyers, 1 submarine depot ship and 4 submarines. 

Own Situation : 

Operations and movements in the Black Sea area were 
hampered to a great extent by continuous bad weather. 

Special Items : 

a. The Commanding General, Armed Forces, Balkans oom- 
municates that it is not planned to transfer the supply troops 

of the 22nd Airborne Division to Crete. (See Telegram 1250.) 

b. Grout) South objects to the plan of the Chief Quarter- 
master Black Sea to charge the Navy with the execution of all 



-33U- 



CONFIDENTIAL 
27 Aug. 1942 

maritime shipping operations, including towing, lightering, load- 
ing and unloading. (See Telegram 1320.) The Naval Staff Quarter- 
master Division will take up the matter. 



IX. Situation East Asia 

No official reports of any importance were received. 

American reports assert that the sea battle in the Solomons has 
reached far greater proportions than revealed by the communique of 
the Navy Department. U.S. warships are attempting to protect the 
bridgeheads against considerable Japanese naval forces off Tulagi. 
The action is still in progress. The Navy Department announced 
that it is too early yet to make a conclusive statement regarding 
the results of the battle. 

The Japanese landed in Milne Bay on New Guinea against strong air 
defenses. A.Japanese transport was allegedly sunk, a cruiser 
probably sunk, and a destroyer damaged. According to a report 
from Tokyo the American fleet in the Solomons was severely damaged 
by Japanese air forces: In addition to the two aircraft carriers 
already reported^a PENNSYLVANIA-class battleship is said to have 
been severely damaged. The Japanese concede that one of their 
smaller aircraft carriers was damaged and that a destroyer was 
sunk. 



X. Army Situation 

1. Russian Front : 

Army Group A : 

The advancing spearheads of Army Group Ruoff had to 
fight off persistent local enemy attacks. The 1st Mountain Divi- 
sion is fighting for the possession of Marukk Pass, while the 4th 
Mountain Division has captured Tshmasha Pass. The 23rd Panzer 
Division began an offensive north of Maisky. 

Army Group B : 

The advancing units at the right wing of the 4th Panzer 
Army are under heavy enemy pressure. Attacks on the northwestern 
flank were repulsed. Units of the 71st Division penetrated into 
the town of Kalach. Enemy attacks on our positions in the Don 
River bend in the' Kremensk area were repulsed. Seraf iraovich was 
taken by the enemy. 

Central Army Group ; 

In the area south of Sukhinichi all attacks on the Zhizdra 
River sector were repulsed. Thrusts in the Rzhev area resulted 
in small enemy gains only. 



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CONFIDENTIAL 
27 Aug. 1942 

Northern Army Group ; 

Attacks on the northern section of the land bridge to 
the Ilnd Array Corps were unsuccessful. The enemy succeeded in * * 
breaking through our lines at 2 places between Maluksa and 
Sohluesselburg. The penetrations were sealed off, 

2. Finnish Front : 

At the 20th Mountain Army the 2nd Mountain vDivision took 
over command of the sector of the 6th Mountain Division. 

A new Group "Rosi" was formed which comprises the Liinahamari 
defense sector and the Rybachi Peninsula front. 

3. North Africa : 

Enemy reconnaissance activity was lively and artillery 
fire was normal during 27 Aug. Air reconnaissance established that 
the number of motor vehicles in the area between Cairo and Wadi el 
Natrun was doubled and amounts now to 1,000 vehicles. 

************************* 



-336- 



CONFIDENTIAL 



28 Aug. 19 42 



Items of Political Importance 

Churchill's visit to Moscow 

According to .Japanese diplomatic circles Churchill's Cairo confer- 
ences with Smuts and the British generals v/ere at least as important 
as his visit to Stalin. It was resolved at Cairo to make the 
greatest possible effort to hold Egypt and to defeat Rommel. Every- 
thing is to be done to replenish and reinforce troops and war ma- 
terial in Egypt as quickly as possible. The U.S.A. is also to con- 
tribute considerably to this end. 

The Daily Herald demands action instead of words and is hoping for 
an integrated strategic plan. The British people are said to be de- 
manding the following from Churchill: 



1) 
2) 
3) 
4) 
5) 



Coordinated Allied strategy, 

A definite plan for just distribution of all resources, 
The abolishment of private interests on the home' front, 
The elimination of red tape, 



Definite post-war plans so that the people need not fear 
that this war, like the last one, will end in a chaotic and only 
temporary peace. 

Great Britain : 

According to Reuter, Lord Mayne was appointed Deputy Minister for the 
Middle East in order to assist Casey. 

The Food Ministry plans an extensive campaign to induce the popula- 
tion to eat potatoes instead of bread. Potatoes, which are produced 
in a quantity almost sufficient to meet the requirements of the' 
country, must become the principal food. 



South Africa : 

During a talk at 
Smuts emphasized 
Portugal. 



which the Portuguese Colonial Minister was present, 
the friendly relations between South Africa and 



Spain : 

The periodical Africa expressed the hope that, as the result of a new 
world order, Spanish Africa will some day emerge as an empire. 



U.S.S.R. : 



The Polish General Anders, 
a temporary internment as a 
lieves Stalin is determined 
man 
are 



who held a field 
pr i s on er of war, 
to coot in ue the 



command in Russia after 

declared that he be- 
war at all costs, while 



ves ^ann is determined to continue ine war at an costs, wniie 
y Russian politicians, particularly the "diehard revolutionists" 
in favor of ending the war. However, both sides have one and the 



-337- 



CONFIDENTIAL 
28 Aug. 1942 

same aim, namely world revolution. 

A Bulgarian diplomat believes that the Russian masses are resigned 
to carry the burden of the v/ar since they lack a clear picture 
of the domestic and foreign political situation. Intensive propa- 
ganda has fostered bitter hatred against Germany. The Government 
has the situation firmly in hand. 

Diplomats of governments in exile, on their way through Portugal 
from Russia, declare unanimously that Comintern propaganda is on the 
increase and that there is no intimation that Soviet Russia is turn- 
ing bourgeois . The Omsk radio station is being greatly expanded for 
the dissemination of subversive propaganda. For these reasons 
neither London nor Washington wants to crush Germany completely; they 
place value on maintaining Germany's war potential for the time when 
peace is concluded. 

An article in the Neue Zuericher Zeitung disclosed the alleged 
opinions of Russian diplomats concern l:iff future Russian demands in 
Europe in connection with Molotov's London agreement. For details 
see Political Review No. 201, paragraph 4b. 

Argentina : 

The Government decided to recognize Brazil as a non-belligerent. 

The position of the Castillo Government has become considerably more 
difficult on account of the latest developments. 



Conference on the Situation with the Chief, Naval Staff 

I. The Deputy to the Chief, Naval' Staff Quartermaster Division 
took part in the landing maneuvers held in Danzig Bay under the com- 
mand of the Admiral, Amphibious Forces by 2 battalions and reported 
that on the whole the exercises proceeded smoothly and according to 
'plan . 

II. Referring to the appreciation of the Commanding Admiral, Sub- 
marines for the contribution of the Naval Communications Division 
in developing the radar search receiver, the Chief, Naval Ordnance 
Division, calls attention to the part played by the Naval Ordnance 
Division in developing this instrument. 

The Commander in Chief, Navy took this occasion to express his dis- 
approval of the way in which the Commanding Admiral, Submarines acted 
in this matter. It is the business of the Commander in Chief, Navy 
alone to express recognition for achievements in matters concerning 
the Navy. 

III. The Chief, Naval Ordnance Division reports further about the 
widespread erroneous belief that naval anti-aircraft artillery is 
inferior to that of the Air Force. The Commander in Chief, Navy 
approves the proposal of the Naval Ordnance Division to submit a re- 
port correcting this impression to the Permanent Representative at 
the Fuehrer Headquarters and to the Naval Staff for insertion in the 
V/ar Diary. ♦ 

IV. The Chief, Naval Staff Submarine Division reports that the sub- 
marine repair ship KAMERUN is transferring to Narvik. 

-358- 



28 Aug. 1942 

V. The Chief, Naval staff announces the decisions made by the 
Fuehrer at the conference on 26 Aug. and issues orders for their 
execution. See War Diary, 26 Aug. 

VI. The Chief, Naval staff directs the assignment of a modern 
mine sweeper flotilla to the Commanding Admiral, Defenses, West 

in order to maintain adequate patrol service in the Day of Biscay. 
If necessary the forces in the northern area would have to be 
weakened for the purpose. 

In a Very Restricted Circle ; 

VII. The Chief, Operations Branch, Naval staff Operations Division 
reports on the enemy operational order captured at Dieppe, which is 
being evaluated by the Naval Staff Intelligence Division. It can 
be clearly seen from this order that the operation was of limited 
scope . 

See War Diary 26 Aug. regarding the suspicion that our mine -laying 
plans were betrayed. « 

VIII. See l/Skl 16.59/42 Gkdos. Chefs, for an account of Antonescu's 
reply to the report of the Commanding Admiral, Group South. 

For copy see War Diary, Part C, Vol. XlVa. 

IX. For a further report of the Chief, Operations Branch, Naval 
Staff Operations Division on operation "Wunderland" see Situation, 
Arctic Ocean. Since the SCHEER will not enter the shipyard for re- 
pairs, there is no necessity to call the operation off, as long as 
its • execution serves a useful purpose. 

The Naval Staff issues the following order to Group North with copy 
to the Admiral, Arctic Ocean: 

1. Overhauling of the SCHEER has been postponed so that 
operation "Wunderland" has no longer a definite time limit. 

2. The object of operation "Wunderland" is to attack shipping 
on the Arctic route, particularly in the v/aters of Novaya Zemlya 
and the Kara Sea. The only report received in this connection con- 
cerns a convoy reported by the Japanese which passed through the 
Bering Strait between 1 and 3 Aug. and could have reached the White 
Sea at the earliest 15 or 18 days later, if conditions were favorable. 
It is not certain, however, that the convoy was destined for the 
White Sea since some of the east -west traffic is bound for the Arctic 
ports of eastern Siberia and travels only as far as Ambarchik, Tiksi, 
or Nordvik. This explains why larger steamers from the east have not 
been reliably located so far, although oth^r reasons may be delays en 
route or inadequate air reconnaissance. The Naval Staff is convinced 
that shipping from east to west will continue, and that there has been 
a regular schedule this summer from the Yenisei and the Ob to the White 
Sea ports. As long as operation "Zeus'* is not detected by the enemy 
there is no reason for x him to stop this traffic. 

3. No information is available so far whether shipping is 
routed north of Novaya Zemlya or through the Kara Strait and Yugbr 



-339- 



CONFIDENTIAL 

28 Aug. 1942 

Strait. Either possibility must be taken into account. Apparently 
favorable ice conditions make it likely that the shorter southern 
route is used. The southward thrust by operation "Wunderland" which 
is under way may clarify this question. 

4. Even if this operation should bring no results, it does 
not necessarily mean that shipping was discontinued, because ships 
might be sailing at irregular intervals. The waters are navigable 
until early October, between the Yenisei and the White Sea sometimes 
beyond this date. 

5. Operation "Wunderland" is therefore to be continued for the 
time being unless there are indications of a threatening enemy re- 
action when he learns of operation "Zeus", or unless there are in- 
dications that strong enemy forces are approaching, for instance from 
the west. One of the principal concentrations of traffic is in the 
vicinity of Dickson Island, and it is left to the discretion of the 
commanding officer to extend the operation to this area. 

6. Plans are to be submitted. 

The Chief,, Naval Staff approves of the above. 



Special Item 

Descriptions of motor launch ML "306 M which v/as captured off St. 
Nazaire, of small British war vessels, and of the new British motor 
gunboat with steam turbine drive are contained in News Analysis No. 
40 of the Naval Intelligence Division, Foreign Navies Branch. 



Situation 28 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation ; 

North Atlantic ; 

According to Reuter, the U.S. battleship IOWA, the keel 
of which was laid at the end of June 1940, was launched at the 
Brooklyn Navy Yard on 27 Aug. 

The U.S. destroyer INGRAHAM sank in the Atlantic due to a collision 
in foggy weather . 

Radio Dsventry reports that the Brazilian Navy is to be reinforced 
by 25 U.S. destroyers to be supplied on a lend-lease basis. According 
to an intelligence report from Portuguese shipping circles empty 
ships are being held back not only in English ports as previously 
observed but also in U.S. ports. This concerns mostly large ships. 



-5J+0- 



CONFIDENTIAL 
28 Aug. 1942 

South Atlantic ; 

Daily Express describes the raider interfering v/ith mer- 
chant shipping in the South Atlantic as carrying 2 or 4 motor torpedo^ 
boats of 62 tons. Her armament is given as six 20 cm guns, her speed' 
as 20 knots. Ship "28" actually has only one PT boat. 

— "* .* 

An agent reports, from the U.S. Embassy at Madrid that a U.S. aircraft 
carrier, probably the RANGER, will sail for Gibraltar from a West 
African port on 4 Sep. with 80 planes aboard. 

The French radio intercept service established that British transports 
are being concentrated on the West African coast. The French suspect 
that a thrust against Dakar is planned and link this fact with the 
cutting of the cable from Casablanca to Dakar at a* point 200 km south 
of Casablanca. 

Indian Ocean ; 

According to an intelligence report originating in Budapest 
diplomatic circles, a U.S. convoy of 8 transports and a number of 
freighters sailed from Charleston under destroyer escort for Bushire 
in the Persian Gulf. The convoy is said to carry several thousand 
infantrymen with complete equipment of motor vehicles, guns and tanks, 
and to be the largest force to be shipped to Bushire since the 'ar- 
rival there 2 months ago of a full division. 

Pacific Ocean ; 

According to a report from Tokyo, a small cruiser and 2 
destroyers of the U.S. Pacific Fleet entered the Bering Strait around 
the end of July and will be engaged in escort duty. At the end of 
July or early in August' 3 Russian steamers carrying lead, v/ool, and 
sugar arrived at Vladivostok from the U.S.A. 

2. Own Situation ; 

No reports were received from our ships in foreign waters. 

Enemy situation report by Radiogram 2249. 

The German Armistice Commission, France reports on French ship move- 
ments by Telegrams 1215, 1300, 1753, 1915. 



II. Situation West Area 

1. Enemy Situation ; 



Air reconnaissance observed lively ship and convoy traffic 
in the western part of the Channel. According to photo reconnaissance 
3 destroyers, 1 torpedo boat, 15 steamers, 250 barges and coastal 
vessels were at Southampton. 

A destroyer, 2 destroyers in dock, 5 minesweepers under construction, 
and 3 steamers were observed at Cowes. 



-3Ui- 



CONFIDENTIAL 
28 Aug. 19 42 

2. Own Situation ; 

Atlantic Coast ; 

Nothing to report. 

Channel Coast ; 

A convoy for the Channel Islands was unsuccessfully 
bombed and strafed by low-flying enemy planes at 0226. In the 
afternoon several plane formations, some of them large, flew over 
the French coast south of Boulogne. Group North submits supple- 
mentary reports and additional information in connection with the 
enemy landing at Dieppe on the basis of the captured orders and 
experiences of naval units. For copy see l/Skl 21231/42 Gkdos. in 
File "Enemy Landing at Dieppe on 19 Aug. 1942". 



III. North Sea, Norway, Arctic Ocean 

1. North Sea ; 

Enemy Situation ; 

Nothing to report. 

Own Situation ; 

Escort and patrol activity in the area of the Commanding 
Admiral, Defenses, North proceeded according to plan. 

Enemy air activity during the day over the German Bight. An enemy 
plane was shot down by a patrol vessel, another one by our fighter 
planes . 

A detailed report was received from the Admiral, Holland about the 
British air raid on the Wilton Shipyard at Rotterdam on 27 Aug. For 
copy see Telegram 1630. In addition to sinking the COBRA, the enemy 
planes scored 2 direct hits on the 46,000 ton dock, v/hich will be out 
of commission for several months, and 1 hit on the 20,000 ton dock, 
which will be back in service in a few weeks. The Wilton Shipyard's 
coppersmith shop is also out of commission "and the shipbuilding shop 
was damaged, 

2. Norway ; 

Enemy Situation ; 

Nothing to report. 

Own Situation ; 

Shipping in Petsamo Fjord was shelled on 25 and 26 Aug. by 
an enemy battery on Rybachi Peninsula; no damage was done. The 
Commanding General, Armed Forces, Norway ordered a second degree alert 
for his entire area during the nights of 26 and 27 Aug. A first de- 
gree alert was ordered for the area of the Naval Shore Command at 
Molde every night from 2200 to 0700 until further notice. Convoy ser- 
vice proceeded according to plan. 

-3U2- 



CONFIDENTIAL 
20 Aug. 1942 

Group North signifies its approval of the barrage plans of the Com- 
manding Admiral, Norway for the area from Stavanger to Kristiansand 
South and is in complete agreement 'with his remarks regarding the 
requests of the Commanding Admiral,- Fleet, Group North likewise 
approves the minefield planned in Alta Fjord by the Commanding Ad- 
miral, Norway. The allocation of the mines required for both pro- 
jects as requested by Group North is ordered by the Naval Staff 
Operations Division. 

The Fleet Command passed Kristiansand South in an easterly direc- 
tion aboard the HELA at 1620. 

Group North reported on 24 Aug. its intention to transfer the SCHEER 
immediately following completion of operation "Ymnderland". Since the 
Fuehrer has ordered that the SCHEER not be sent to the Atlantic, this 
plan need not be carried out. Group North and the Fleet are in- 
structed to this effect and notified that the previously ordered ship- 
yard overhaul of the SCHEER is postponed for the time being. The Fleet 
is to submit a proposal for another date for the repair after con- 
sultation with Group North. 

3. Arctic Ocean ; 

Enemy Situation : 

Air reconnaissance brought no new information. 

Own Situation : 

On 24 Aug. Group North submitted a survey of all nine -laying 
operations planned in the northern area. (See War Diary 20 Aug.) 

Operation "Peter" off Matochkin Strait was begun on 23 Aug. 

Operation "Zar" (ULM) began on 24 Aug. 

Operation "Iwan II" and "Rurik" are temporarily postponed; instead 
minefield "Peter" will be reinforced. 

It is planned to carry out operation "Paul" off Yugor Strait at the 
earliest possible date. The laying of minefields "Rasputin", "Zare- 
witch", "Romanow", and "Iwan I depends on the receipt of the 
necessary mines and on the completion of operation "Wunderland". 

Submarine U "456" was ordered, after meeting submarine U "589" to 
loperate along the western coast of Novaya Zemlya as far south as 
Kostin Strait and to intercept any traffic encountered there. Sub- 
marine U "209" is to patrol Kostin Strait if she is west of 54° E, 
otherwise she is to remain in the Yugor Strait area. 

Submarine U "589" executed operation "Peter" according to plan. At 
0004 the ULM was instructed by the Admiral, Arctic Ocean to lay all 
minefields according to the operations order at her own discretion. 
So far the ULM has not reported by radio; however, the Admiral, 
Arctic Ocean assumes that everything is proceeding according to 
plan. s ) 

The SCHEER is instructed by the Admiral, Arctic Ocean to withdraw 
from the zone of operation by noon of 29 Aug. at the latest. s The 



-31+3- 



CONFIDENTIAL 
28 Aug. 1942 

Admiral expects that the ship will have reached about 73° N in the 
Kara Sea by then, unless she found other nore attractive targets. 

Group North disagrees with the above order and desires the exten- 
sion of operation "Wunderland" and completion of the task accord- 
ing to the original plan, since the situation has not changed and 
no special dangers have arisen. The SCHEER reported her position 
by short signal at 79° N, 60° E at 0600 and her intention to ad- 
vance in the direction of Spitsbergen. 

See conference on the situation wi th the Chief, Naval Staff for the 
Naval Staff's view of the situation and the directive issued. 

Thereupon, Group North directed the Admiral, Arctic Ocean to carry 
out the operation in accordance with the order of the Naval Staff, 
paragraph 5. (Thrust into the waters in the vicinity of Dickson 
Island. ) 

The Admiral, Arctic Ocean informs the SCHEER that the previous time 
limit has been cancelled and that the operation can be extended be- 
yond 73° N. The Admiral, Arctic Ocean assumes that the operation 
in the Kara Sea can be continued unless the reported intention to 
return was due to urgent causes; he orders the operation to be con- 
tinued even if the sv/eep into the Kara Sea was already executed, un- 
less the ship was discovered by the enemy or other grave reasons make 
it necessary to return. 

At 2045 the Chief of Staff, Group North reports by telephone receipt 
of a short signal from the SCHEER which indicates that the ship 
fired on Dickson Island. Group North assumes that this action took 
place some time ago, since radio monitoring yesterday revealed in- 
tensified radio communication in the Archangel area. The SCHEER will 
be called upon to report her position and the date of the shelling. 

• 

The bombardment changed the picture of the situation. The SCHEER' s 
short signal is considered to be the report requested by the Ad- 
miral, Arctic Ocean. It is therefore not advisable* to order the 
cruiser to the Kara Sea once more, since her presence has become 
known to the enemy through the bombardment. The cruiser is there- 
fore to continue the return voyage. 

At 2200 the Chief of Staff, Group North is informed of the above 
conclusion reached by the Naval Staff. 

Group North thus instructs the Admiral, Arctic Ocean as follows: 
"Bombardment created new situation. Early enemy reaction to be ex- 
pected. Therefore 'Zeus' return". 

The SCHEER is instructed to report by short signal if the bombard- 
ment did not occur on 26 Aug. and is ordered to break off the op- 
eration and to return according to plan. 



-3W- 



CONFIDENTIAL 



28 Aug. 1942 



IV. Skagerrak, Baltic S$a Entrances, Baltic Sea 

Northing to report from the. area of the Commanding Admiral, 
Defenses, Baltic Sea. 

One ground mine each was swept north of Swinemuende, off the 
southeastern tip of Ruegen, and north of Appenrade. 

A_Swfdish steamer reports that motor schooner V/ALTER sank after a 
mine detonation at Kriegers Flach south of the Sound. 

The laying of minefields "Seeigel 23, 28, 29, and 30" in the 
eastern Baltic Sea had to be postponed on account of bad weather. 
3 vessels were transferred to the Aland Sea for a submarine chase; 
they are based at Mariehamm. Escort and mine-sweeping services 
according to plan. The 3rd Mountain Division is being shipped to 
Reval instead of Finland. 

Special Item : 

Group North requests permission to organize a special requisition- 
ing detachment in order' to seize naval installations and equipment 
during operation "Nprdlicht"; at the same time the Group wants to 
know whether operation "Nordlicht" cancels the Fuehrer's previous 
order prohibiting German soldiers from entering the area involved. 
This order would have to be relaxed. 



V. ■ Submarine V/arfare 

1. Enemy Situation ; 

Reconnaissance activity increased in the southern rendez- 
vous area. At 1555 an enemy plane circled over a submerging sub- 
marine about 190 miles north of Cape Ortegal. According to an in- 
telligence report from Spain, a convoy of approximately 24 steamers, 
a passenger ship and 2 Norwegian tankers sailed from Gibraltar in 
a westerly direction. 

A number of submarine sighting reports were reported from off the 
American coiast and the West Indies. 



2. 



Own Situation : 



See Situation, Arctic Ocean for operations in the north 
area. The North Atlantic group "Vorwaert s " is informed that an 
outgoing as well as an incoming convoy may be expected in its zone 
on 29 Aug. Contact was established with .a small convoy of 3 steamers 
escorted by 4 destroyers in the eastern exit of Belle Isle Strait. 
Submarine U "165" observed b heavy explosions on two steamers of 
500 GRT each, and heard 5 detonations in all. Due to strong defense 
action, the sinkings could not be observed. According to radio in- 
telligence, Radio Ottawa announced the sinking of a ship in this 
area. However, the Commanding Admiral, Submarines credited the sub- 
marine with 2 sinkings. 



-3U5- 



CONFIDENTIAL 
28 Aug. 1942 

Submarine U "605" located the spot at which steamer TROLLA (1,598 
GRT) sank in quadrant BD 1674. 

Submarine U "511" sank an 8,000 GRT steamer out of a convoy in 
qj adrant EC 1298 and probably sank a 9,000 GRT tanker. 

The operation of group "Bluecher" against the convoy in quadrant 
CF was called off. Submarine U "566" sank a 7,000 GRT steamer 
i. quadrant CF 6315 and torpedoed a 5,000 GRT steamer; the boat 
was later rammed while being pursued with depth charges. 

For details see supplement to submarine situation in War Diary, 
Part B, Vol. IV. 



VI . Aerial Warfare 

1. British Isles and Vicinity : 

Daylight attacks with good results were made on coastal 
towns in southern and southeastern England. 

Extensive reconnaissance was conducted in the Channel area. 21 
German planes raided Sunderland during the night of 28 Aug. 

2. Incursions ; 

300 enemy incursions penetrated as far as Frankfort on 
Main, Pilsen, Munich, and Strassbourg during the night of 28 Aug. 
Bombs were dropped on the Hallberg iron works at Saarbruecken, on 
Nuernberg, Erlangen, Karlsruhe, Augsburg and Munich. For damage 
see daily situation report. 

3. Mediterranean Theater : 
Nothing to report. 

4. Eastern Front t 

Our planes flew 2,300 sorties and shot down 65 enemy 
planes. Reconnaissance activity in the Black Sea, the Caspian Sea 
and the Arctic Ocean. 

5. Special Items t 

a. Complying with a request of the Naval Staff Opera- 
tions Division, the Air Force Operations Staff released 12 Arado 
196 planes to Bulgaria for coast patrol tasks. The negotiations are 
not yet completed, but the early delivery of the planes can be ex- 
pected. 

b. Regarding disposition of the mine-sweeping planes 
see 1/Skl I op 21148/42 Gkdos. in War Diary, Part C, Vol. V. 



-5U6- 



CONFIDENTIAL 
28 Aug. 1942 

VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean : 

According to the German Armistice Commission, France, the 
French Admiralty reported in reply to an Inquiry that no unusual 
warships or merchant ship activity has been noticed off the coast of 
Morocco or off Dakar. French planes have reconnoitered as far as 
1,000 miles. 

According to an intelligence report from an Italian source, an important 
meeting of the American war council was held at Cairo. A new shipment 
of U.S. troops and war material is said to be expected at Suez next week. 
It was allegedly resolved to forego shipping through the Mediterranean, 
except in cases of emergency. 

The convoy which sailed west from Gibraltar is escorted by 3 corvettes 
and 2 gunboats. An intelligence report from Spain states that the war- 
ship situation at Gibraltar is 'essentially unchanged. A total of 43 
merchant steamers, 9 tankers and 2 passenger vessels was counted. 72 
planes were in the harbor and on the airfield. 

Several submarine sighting reports were sent from the central Mediter- 
ranean, for example from the southern entrance to the Strait of Otranto 
and north of Benghazi. 

In the eastern Mediterranean a convoy of 1 steamer, 1 tanker and 3 
patrol vessels on an easterly course was sighted by air reconnaissance 
north of Alexandria. No other shipping was encountered. 

2. Own Situation, Mediterranean : 

According to an Italian report, many moored mines were, 
located 11 miles north of the Derna lighthouse. Otherwise nothing to 
report. 

3. Transport of Supplies to North Africa : 

Considerable quantities of German supplies were destroyed 
on the ships reported lost or damaged on 27 Aug. Tanker GIORGIO, carry- 
ing 2,474 tons of fuel, mainly aviation gasoline, fortunately was able 
to reach Tobruk, The destroyer which escorted steamer CAMPER! re- 
ports having definitely destroyed the attacking enemy submarine. It is 
reported that the Italian steamer PAOLINA was also damaged on 27 Aug. 
by a mine in the vicinity of Cape Bon and that steamer DIELPI en route 
from Suda to Benghazi was sunk by enemy planes. 

The losses sustained during, the last 2 days reached a 
regrettable high. The attacks of the enemy's sub- 
marines and planes have in no way abated. 

1,320 tons of supplies were unloaded at Tobruk on 28 Aug. 

4. Area Naval Group South : 

Aegean Sea : 

Destroyer HERMES returned to Piraeus from a submarine chase. 
High seas prevented the Air Force from checking the report of mines 
off Cerigotto. Due to the lack of planes, the submarine chase scheduled 

-3U7- 



CONFIDENTIAL 
28 Aug. 1942 

by the Air Force in the same area had to be cancelled. 

Enemy planes operated over Candla. Convoy service was partly curtailed 
by bad weather, but otherwise proceeded according to plan. 

Black Sea : 

Enemy Situation ; 

Group South reports that on 25 Aug. about 4 to 6 fast ves- 
sels were able to enter the Sea of Azov at the southern tip of 
Chushka Spit in spite of a hit on one of the ships scored while pass- 
ing the Kerch Strait. 

Own Situation ; 

The laying of a net barrage in Feodosyia was begun. It is 
planned to operate a mine-sweeping plane on the route from Mariupol to 
Yeisk. The harbor entrance of Temryuk is blocked by a sunken lighter, 
even for minesweepers. 8 new motor barges of the Danube Flotilla 
arrived at Sulina and are proceeding to Constanta. Due to bad weather 
all PT boat and subchaser activity during the night of 27 Aug. was 
cancelled. Convoy operations in the Black Sea proceeded without in- 
terference. A Rumanian ship struck a mine and sank in the Kilia 
estuary. An old influence mine was probably responsible. 



VIII. Situation East Asia 

According to a U.S. Navy Department communique, the Japanese 
surface forces seem to have withdrawn to the waters off Tulagi. The 
Americans expect a resumption of the offensive after the Japanese 
have regrouped their forces. 



IX. Army Situation 

1. Russian Front ; 

Army Group A : 

Enemy air activity continued undiminished at the sectors 
of Army Group Ruoff . The Rumanian Division and the western wing of 
the V Army Corps gained 12 km. against stubborn enemy resistance. 
Pressure on our advancing spearheads continues. Novorossisk is under 
fire of our artillery. Our divisions at Baksansk and Mozdok were 
under heavy enemy gunfire. Most of the LII Army Corps reached the 
area northeast of Mozdok. The 16th Motorized Division advanced 
north and captured the lake area aX Malyye-Derbety together with the 
4th Rumanian Division. 

Army Group B : 

The situation south of Stalingrad is unchanged. The supply 
road for our forces which reached the Volga River was freed and at- 
tacks against it were repulsed thanks to the splendid support of the 



-31+8- 



CONFIDENTIAL 
28 Aug. 1942 

Air Force. Tank attacks south of Kremensk were repulsed with partic- 
ularly severe enemy losses. In the eastern section of the Don River 
bend and in the area west of Serafimovich the enemy made some gains. 
Strong enemy pressure rests on the right wing of the -8th Italian 
Army. 

Central Army Group ; 

The expected general enemy offensive under the Commander 
in Chief of the Central Front, General Zhukov, was launched on a 
broad front in the area between Sukhinichi and Byelev after a strong 
artillery barrage and with the support of strong air forces. Thus 
far our infantry and artillery strongly supported by our Air Force 
succeeded in repelling all attacks. 

Strong enemy gunfire in the area south of Vyazma. Also .the expected 
offensive against the northern Rzhev front began at the 9th Army 
sector, following the most vehement artillery barrage and with the 
participation of large numbers of tanks; it was repulsed on the whole 
in spite of great enemy superiority. The large-scale attack was soon 
reduced to local actions which were frequently joined by our Air 
Force with good results. 

Northern Army Group : ' 

All enemy efforts to break through the land bridge to the 
II Army Corps failed. The enemy renewed his attacks southeast of 
Schluesselburg. Enemy forces which succeeded in penetrating into our 
lines were either sealed off or forced to withdraw. 

2. Finnish Front ; 
Nothing to report. 

3. North Africa : 
Nothing to report. 

tKHMHtiMHMHHHMKHHMHKMHMHHHi' 



-&9- 



CONFIDENTIAL 
29 Aug. 1942 

Items of Political Importance 

In the opinion of the Anglo-American press the Allied plans for an 
offensive in North Africa have gained new importance because of 
Brazil's entry into the war. The strategic importance of Dakar is 
stressed and it is emphasized in this connection that the fate Of 
French North Africa depends on the outcome of the battle in Egypt. 
If Laval should completely comply with Germany's plans, the Allies 
will be forced to act quickly and forcefully. In an Argentine 
newspaper U.S. Admiral Woodward is also quoted as saying that the 
Allies will strike a surprise blow against Dakar and the Atlantic 
islands which they will capture in a lightening move similar to the 
invasion of I.Iadagascar. These steps are necessary to protect Brazil 
and in order to strengthen the Allied position with regard to Spain. 

Concerning the shipping situation the Swedish press reports that 
London circles are talking of a change in submarine warfare, due to 
the fact that the losses of Allied tonnage have constantly decreased 
since last July. This improvement is credited to the effectiveness 
of the anti-submarine protection, the spectacular success of the 
Sunderland and Catalina planes, and finally to the aerial attacks 
on German submarine bases and shipyards. 

Commerce Minister Dalton also stressed the decreasing sinkings, but 
stated at the same time that the losses sustained since last March 
were so severe that imports must be heavily curtailed for some 
time to come. In June The Economist was very pessimistic with re- 
gard to the progress of American shipbuilding, which allegedly lagged 
28$ behind the'scheduled figure of 1,000,000 tons in the first 
quarter of 1942. Admiral Land termed the scarcity of tonnage the 
most serious threat confronting the U.S.A. 

A news agency report from New York discloses that maritime insurance 
companies have announced the first reduction in v/ar risk insurance 
rates comprising 17 to 20$ since the outbreak of the v/ar in view of 
the continuous improvement of the convoy system. 

British strategy is criticized in a noteworthy article in the 19th 
Century magazine which states that under the present system politics 
and strategy are constantly at odds and that the setup of the 
supreme war council is completely inadequate.. For details see 
Political Review No. 202, paragraph 3. 

Uruguay ; 

The German Ambassador at Buenos Aires reports that the government 
of Uruguay is searching for a pretext to enter the war; such an 
opportunity might present itself if the steamer PRESIDE17TE TERRA, 
scheduled to sail from New York for Montevideo at the end of August, 
is sunk. 



Special Items : 

I. Several minefields (flanking barrages in northern Norway, the 
northern North Sea, the Strait of Sicily, etc.) offer the enemy 



-350- 



CONFIDENTIAL 
29 Aug. 1942 

a relatively safe opportunity to break through due to the lack of anti- 
sweeping devices effective at water depths exceeding 100 m. The Naval 
Staff therefore asked the Naval Ordnance Division, Underwater Obstacles 
Branch for a cutter float suitable for depths of 100 to 500 m. These 
cutter floats will go into production at once. 

Naval Groups North, West, and South, the Commanding Admiral, Norway, the 
German Naval Command, Italy, and the Admirals, Aegean Sea and Black Sea 
are notified of the above by the Naval Staff and requested to report 
their requirements for already existing or planned minefields. 

II. The Naval Staff issued a directive for the disposition of our 
fleet forces for the coming months to Groups North and West, and the 
Fleet, with copies to the Chief, Naval Staff Quartermaster Division, 
the Naval Aide to the Fuehrer, the Naval Liaison Officer to the Army 
High Command, and the Naval Representatives on the Air Force Operations 
Staff and the Army Operations Staff. For copy no. 9 of this directive 
see l/Skl la 1674/42 Gkdos. Chefs, in War Diary, Part C, Vol. Ha. 

III. Vice Admiral Krancke, -the Permanent Representative of the Com- 
mander in Chief , Navy at the Fuehrer Headquarters, notified the Chief, 
Naval Staff Operations Division by telephone on 27 Aug. 1942 of the 
following: 

The Fuehrer remarked during a conference: 

a. The creation of an independent operational Air Force has 
proved successful, since it gave the Supreme Command a free hand to 
concentrate its strength in accordance with the developments of the sit- 
uation by transferring air force units rapidly to any desired zone. 

b. The aircraft carriers are a naval matter, and the organiza- 
tion of the air forces for the carriers should be made in close touch 
with the Air Force. 



Situation 29 Aug. 1942 

I. ■ War in Foreign Waters 

1. Enemy Situation : 

Notrth. Atlantic : 

On 27 Aug. the Italian tanker ARC0LA (position 06° 48 » N, 
37° 40' W) took over the survivors of a British steamer sunk by a sub- 
marine. 

South Atlantic : 

In connection with the reported cutting of the cable from 
Casablanca to Pakar, L the French cable-layer ARAG0 left Dakar on 27 Aug, 
under protection of a French warship to make the necessary repairs in 
the v/aters off Cape Cantin. 



-351- 



CONFIDENTIAL 
29 Aug. 1942 

The U.S. cruiser OMAHA and the destroyer DAVIS cancelled scheduled 
festivities and left Montevideo unexpectedly on 25 Aug. According 
to a situation report by the Commanding Admiral at Capetown, a sub- 
marine is suspected in the vicinity of St. Helena. 

Indian Ocean : 

The Chief of the East India Naval Station reported on 13 
Aug. his intention of dispatching a ship of the India Fleet, probably 
a cruiser, to England for boiler, repair . 

2. Own Situation : 

At 1957 the following short signal was received from ship 
»23»». "Dismissed supply ship on 29 Aug. Fuel supply sufficient 
until 6 Dec." 

The Naval Staff confirms receipt of the message by Radiogram 2201. 

At 2058 the following short signal from ship "28" was received: 
"Position in quadrant GY 51. Shifting to South African operations 
area (west). Supplies sufficient for 6 months. Have used 20$ of 
medium caliber ammunition. n 

The Naval Staff confirms receipt by Radiogram 2259. 

The above reports confirm that operations of both 
auxiliary cruisers are proceeding according to 
plan and that the search by American warships was 
futile. 

Enemy situation report to all ships in foreign waters by Radiogram 
1708. 

The German Naval Command, Italy reports the positions of the 
Italian tankers ARCOLA and TAIGETE on 28" Aug., and the German 
Armistice Commission reports the positions of the French steamers 
in the Atlantic. (See Telegrams 0245 and 1240.) 



II. Situation West Area 

1. Enemy Situation : 

Air reconnaissance during the morning sighted a cruiser 
and 3 destroyers south of Portsmouth and in the afternoon 5 steamers 
in the harbor of Falmouth and a destroyer just entering port. 

2, Own Situation : 
Atlantic Coast : 

The 3rd Torpedo Boat Flotilla arrived at Nantes. An ex- 
ploratory sweep of the outer channels of the southern Bay of Bis-, 
cay proceeded without particular incident. 

Channel Coast : 

During the night of 28 Aug. the 5th PT Boat Flotilla con- 
ducted a reconnaissance sweep of the Bale de-la Seine and north of 

-352- 



CONFIDENTIAL 
29 Aug. 1942 

Le Havre without success. 

During the day enemy planes operated over the entire Channel area. 
Mine sweeper 13 "3606" was sunk by a direct hit during a bomber 
attack on Ostend; it will be possible to salvage the ship. Other- 
wise nothing to report. 



III. North Sea, N or way', Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

Enemy motor gunboat attacks on our convoys in quadrants 
AN 8265 and AN 0267 were successfully repulsed during the night of 
28 Aug. 2 of the attacking boats were damaged. At 0700 there was 
an exchange of gunfire between a Spitfire and ships of the Rhine 
Flotilla off Flushing; both sides scored hits. 

The Commanding Admiral, Defenses, North reports 11 ground mines 
swept off Terschelling, Borkum, and Ameland. 

2. Norway : 

Nothing to report from the area of the Commanding Ad- 
miral, Norway. 

Special Items ; 

With reference to the planned minefields in the Krnstiansand South- 
Stavanger area (see War Diary 24 Aug. and 26 Aug.) it is belatedly 
reported that the Naval Staff, in view of the loss of the steamers 
BOLTENHAGEN and GE0RG L.M. RUSS, on 17 Aug. called the attention of 
Group North to the necessity of fighting enemy submarines off the' 
Norwegian southwest coast with mines. Due to the importance of this 
measure which is to benefit primarily the safety of merchant vessels 
proceeding close to shore, the Naval Staff examined all objections 
presented by the interested parties and came to the following con- 
clusions : 

a. Mines laid at 17 m. depth are ineffective against sub- 
marines proceeding at periscope depth. 

b. Mines laid at 12 m. depth prevent passage of heavy ships. 

c. The chances that the enemy will locate our ships are con- 
sidered equal on inner and outer routes. 

d. Cooperation with fighter planes is more difficult on the 
outer routes, since the planes cannot find our ships so easily as on 
the inner routes. An investigation will have to be made to decide 
whether this difficulty can be overcome by suitable measures, for 
instance in the field of communication,, or whether fighter protection 

» * 

-353- 



CONFIDENTIAL 
29 Aug. 1942 

should be done away with altogether. . 

e. Ships approaching Egersund could be given nore freedom of 
movement by widening the minefree sector. Otherwise the location as 
well as the type of the existing minefields seem to be satisfactory. 

The Naval Staff notifies the Fleet and Group North, with copy to the 
Commanding Admiral, Norway, of the above comment. 

As established by the Commanding Admiral, "Submarines, the most favor- 
able depth for laying mines against attacking submarines is 11 m. ; the 
maximum depth at which mines are effective against British submarines 
at periscope depth is 12.5 m. 

This fact, too, is brought to the attention of the Fleet and Group 
North, with copy to the Commanding Admiral, Norway. 

3. Arctic Ocean ; 

Enemy Situation ; 

According to an intelligence report from Iceland,, all except 
10 of the ships lying in Hval Fjord sailed about 10 Aug. fpr an un- 
known destination. A convoy of 5 ships left Reykjavik in the morning 
of 24 Aug. 

According to the radio intercept service, the Commander in Chief, Home 
Fleet repeatedly received radio messages both from Reykjavik and from 
England after 27 Aug. so that it may be assumed that he is at sea. 

Own Situation ; 

The 5th Destroyer Flotilla is ordered to pick up the SCHEER. 

The Naval Staff informs the Air Force Operations Staff of the termina- 
tion of operation '^Vunderland" . 

The ULI.I is directed by the Admiral, Arctic Ocean to withdraw to the 
north for about 3 days due to lack of reliable information on the en- 
emy situation, in case the ship is not closer than 300 miles from the 
North Cape. 

Group North consented to the step taken by the Admiral, Arctic Ocean, 
i.e. to withdraw the submarines operating in the Iceland area and to 
station them in the Bear Island passage; the Group recommends in view 
of the unclarified enemy situation that the submarines in the Spits- 
bergen area be relieved periodically. Special attention should be 
given to reconnoitering the shipping route from north of Spitsbergen 
to North East Land by a submarine. 

The Naval Staff directs the Commanding Admiral, Submarines and Group 
North, with copy to the Admiral, Arctic Ocean, to carry out the mine- 
laying mission in Kara Strait with the next type X submarine becoming 
available in Germany^ and to consult one another on all details. 



-354- 



CONFIDENTIAL 
29 Aug. 1942 

On 28 Aug. submarine U "209" bombarded the radio station of Chobo- 
varicha. 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

With reference to the reinforcement of the Danish coast de- 
fenses in the manner of the Westwall, as ordered by the Fuehrer (see 
War Diary, 27 Aug.) the Admiral, Denmark reports that he is unable 
to make suggestions concerning protection against attacks from sea, 
because no additional coastal batteries are being placed at his dis- 
posal. With regard to the hedgehog defenses of the Frederik shaven 
and Skagen strongpoints, the Commanding General, Armed Forces, Den- 
mark will be asked to take all measures required. 

Otherwise nothing to report from the area of the Commanding Admiral, 
Defenses, Baltic Sea. 

In the area, of the Commander, Mine Sweepers, Baltic Sea the laying 
of the "Seeigel" minefields had to be postponed further' on account 
of bad weather. Troop and leave transports proceeded according to 
plan. 



V. Merchant Shipping 

A U.S. periodical discusses the difficulties of the supply 
problem confronting the Allies on account of the great distances 
involved. A survey of this question and other information is con- 
tained in short report No. 27/42 of the Naval Intelligence Divi- 
sion, Foreign Merchant Marines Branch. 



VI. Submarine Warfare 

1. Enemy Situation : 

In the North Sea a British plane attacked a submarine 
at 14 55 140 miles northwest of Stadtland. 2 other planes were 
ordered to chase the submarine. 

Undoubtedly the enemy is not unaware of the large 
numbers of operational submarines which left 
Germany during the last few weeks and is thus, 
quite logically, trying to combat them at the points 
where they emerge from the North Sea. 

Lively reconnaissance activity in the western Bay of Biscay. A 
westbound submarine was reported at 1616 by a plane 220 miles 



-355- 



CONFIDENTIAL 
29 Aug. 1942 

northwest of Cape Ortegal. 

A number of submarine sighting reports were intercepted from off the 
American east coast and the West Indies. 

2. Own Situation ; 

See Situation, Arctic Ocean for reports on operations of 
the submarines in that area. 

Submarine U "517" sank a 2,500 GRT steamer at the entrance to Belle 
Isle Strait, which had previously been toroedoed by submarine 
U "165". 

Prom the West Indies, submarine U "66" reports sinking steamer 
TOPA TOPA (5,356 GRT), en route from Trinidad to Freetown and es- 
corted by a plane, in quadrant EO 3325. Submarine U "164" sank a 
6,000 GRT steamer in quadrant EC 2728, and submarine U "509" shot 
at but probably missed a submarine trap in quadrant DQ 9192. 

Submarine U "566" of the South Atlantic group which had been rammed 
and damaged was ordered to return home. 

In the North Atlantic a new group "Stier" consisting of 6 submarines 
will form a patrol line from quadrant AL 7128 to AL 7851. 

For additional reports see supplement to submarine situation in War 
Diary, Part B, Vol. IV. 

Special Items : 

a. Following a report by the Foreign Minister, the Fuehrer 
ordered that the permission to take war measures against Brazil 
granted by the Armed Forces High Command, Operations Staff on 23 
Aug. is to be limited for the time being, so that submarine opera- 
tions off the Brazilian harbors and inside a 20 miles strip along 
the coast are prohibited. A final decision about our future be- 
havior toward Brazil will follow in about 2 weeks-. 

For copy of the corresponding directive of the Armed Forces High 
Command, Operations Staff see Telegram 1750. 

b. The Naval Staff Operations Division submitted to the Na- 
val Representative on the Air Force Operations Staff the map shown 
the Fuehrer by the Commander in Chief, Navy on the occasion of his 
report on 26 Aug. This map shows the activities of the British 
air forces in the southern rendezvous area. At the same time the 
Naval Representative on the Air Force Operations Staff was notified 
that the Commander in Chief, Navy once more informed the Fuehrer 

of his conviction that it is necessary to assign He 177' s to the 
operations in the Atlantic, and that the Fuehrer agreed with this 
opinion without making a definite promise. See l/Skl la 20970/42 
Gkdos. in War Diary, Part C, Vol. V. 



-356- 



CONFIDENTIAL 
29 Aug. 19 42 

VII. Aerial Warfare 

1. . British Isles and Vicinity : 

Fighter bomber attacks were carried out during the day on 
towns in the south of England and on ships in the Channel. A 5,000 
GRT steamer was sunk in the harbor of Falmouth and 2 escort vessels 
were damaged off Dungeness. 

2. Incursions' ! 

There were 73 enemy incursions from the east during the 
night of 29 Aug., 70 of them penetrating into Germany and reaching 
as far as Grodno, Breslau, Dresden, Berlin, and Stralsund. Bombs 
were dropped on Koenigsberg and 17 towns in East Prussia; at Berlin 
on the suburbs of Friedrichsfelde, Neukoelln, and Schoeneberg. No 
enemy planes were shot down. 

3. Mediterranean Theater : 

A destroyer north of El Daba was damaged during an air 
attack. Otherwise only escort and reconnaissance activity. 

4. Eastern Front : 

53 enemy planes were shot down at the various Army 
sectors* The harbors of the eastern Black Sea were reconnoitered. 



VIII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean ; 

According to an intelligence report from Spain, 2 
battleships and 5 destroyers entered the harbor of Gibraltar in 
the afternoon from the west. According to an Italian report the 
battleships are the MALAYA and the RESOLUTION. Radio monitoring 
indicates that they are the ships which were northwest of the Cape 
Verde Islands and west-northwest of Freetown in the evening of 
25 Aug. An Italian report states that 14 blacked-out ships on an 
easterly course were sighted at midnight on 29 Aug. in the Strait 
of Gibraltar. 

An intelligence report from Spain, based on a British source at 
Tangier, states that a major convoy is going to sail through the 
Strait of Gibraltar in .the night of 29 Aug. with British and Ameri- 
can troops and war material for Malta and Alexandria . The source 
is said to be a trustworthy agent who has proved his reliability 
in 3uch matters. 

4 destroyers fired on the coast near El Daba in the early morning 
hours. Air reconnaissance spotted the force on an easterly course 
west of Alexandria. One of its destroyers was damaged in an air 
attack and was in tow. 

In the evening radio monitoring intercepted messages from British 
planes which shadowed Axis convoys in the area betv/een Greece and 
North Africa and reported successful attacks on them. 

-357- 



CONFIDENTIAL 



29 Aug. 1942 



2. Own Situation, Mediterranean : 

During the night of 28 Aug. Tobrul: was heavily attacked 
from the air; no damage occurred in the harbor. The bombarding of 
the coast near El Daba was ineffective. 

3. Transport of Supplies to North Africa : 

The sinking of steamer DIELPI (see War Diary 28 Aug.) 
caused the loss of 512 tons of German supplies for the Armed Forces. 

Otherwise nothing to report on * the transport situation. 

Special Items : 

The Naval Staff brought to the attention of the German Naval Command, 
Italy the directive of the Armed Forces High Command, Operations 
Staff issued to the German General attached to Headquarters of the 
Italian Armed Forces with reference to the effective mining of the 
Strait of Sicily (see War Diary 14 Aug.). In this connection the Na- 
val Staff remarked that the experiences with the latest convoy at the 
middle of August proved that the minefields there offer no obstacle 
to enemy movements and that it must therefore be attempted to in- 
crease their effectiveness. To this end the mines must not only be 
laid closer together, but ways must also be found to render their 
sweeping more difficult. This can be tried by using deeper influence 
mines and anti-sweeping devices. It is being investigated at present 
whether cutter floats for greater depths can be provided. 

The Naval Staff inquired about the effectiveness of the minefield 
off Cape Bon (see War Diary 27 Aug.); in its reply the German Naval 
Command, Italy reports that reconnaissance gives no clear picture 
about the enemy's actual route. There are indications that he may 
have passed directly off Cape Bon, that is within French territorial 
waters, then proceeded within these waters as far as quadrant CN 
2197, and from this point headed directly for Malta. The same route 
may have been used for the return. According to reconnaissance 
photos, the destroyers proceeded north of Bizerte with paravanes. 
The above route crosses the newly-laid Italian minefield. The 
Italian assertion that 3 steamers struck mines in this field has not 
been confirmed so far. The minefield was laid out in the right place 
in order to close the gap of the existing barrage system. 

The Naval Staff is convinced that effective s-ealing of the French 
territorial waters is still of paramount importance. The weakness 
of the Italian alarm minefield was its lack of anti-sweeping de- 
vices. The Naval Staff calls the attention of the German Naval Com- 
mand, Italy to the necessity of laying several rows of cutter 
floats, prior to the laying of a planned new alarm minefield. 

4. Area Naval Group South : 
Aegean Sea : 

Nothing to report. 



^358- 



CONFIDENTIAL 
29 Aug. 1942 

Black Sea ; 

Enemy Situation : 

Air reconnaissance observed lively convoy traffic off the 
southeast coast in the early forenoon. 5 southbound convoys, each 
consisting of one escorted steamer or tanker, were sighted between 
Tuapse arid Poti, all of which were under the protection of a remote 
escort formed by the KRASNY KRIM and 2 destroyers. Photo recon- 
naissance of Poti at 0623 disclosed the presence of 1 battleship, 
1 battleship hull, 2 heavy cruisers, 1 training vessel, 4 destroyers', 
of which 2 were in dock, 1 torpedo boat in dock, 11 submarines of 
which 2 were in dock, and 17 steamers. 

Own Situ a tion : 

11,1 — ' ■ . i . ^ 

Minesweeping operations of the Crimean Mine Sweeper Group 
and the Naval Special Duties Detachment off Varna proceeded accord- 
ing to plan. 

Attempts are being made to blow up the wreck blocking the entrance ■ 
of Temryuk harbor. German motor minesweepers were fired upon in 
the afternoon of 28 Aug. off Temryuk by an enemy coastal battery 
without result. 

The first remote clearance group of the Danube Flotilla is scheduled 
to transfer from Feodosyia to Genichesk through the Kerch Strait 
during the night of 29 Aug. So far no report about the progress 
of this operation lias been received. 

Special Items : 

a. The urgent warning given by Group South regarding the 
inadequate capacity of the Salamis base (see War Diary of 24 Aug.) 
confirmed the opinion of the Naval Staff that the strategic develop- 
ment in the Mediterranean requires that something must be done 
without delay about the submarine base at Salamis. The matter has 
been taken up by the Naval Staff Submarine Division with the coopera- 
tion of the Naval Staff Operations Division. For copy see l/Skl 
20833/42 Gkdos. 

b. In accordance with an order by the Commander in Chief, 
Navy given in compliance with a Fuehrer directive, the Naval Staff 
Submarine Division was instructed by the Chief of Staff, Naval 
Staff to increase to 6 the submarines to be transferred from Ger- 
many to the Black Sea. 3 additional submarines are thus to be 
prepared for transfer. 



IX. Situation East Asia 

Reports from Chungking assert that Chiang Kai-shek's forces 
have recently fought successful operations against the Japanese in 
the Chekiang and Kiangsi Provinces and recaptured Chuksien, Siu- 
Kiang, Likitan, Tuchang and Yuantang. 



:-359- 



CONFIDENTIAL 
29 Aug. 19 42 

Allied Headquarters in Australia announces that the operation of the 
land forces at Milne Bay is growing in scope. 



X. Amy Situation 

■ 

1. Russian Front : 

Army Group A : 

The western group of the 5th Army Corps is advancing in the 
direction of Anapa. Due to bad road conditions the heavy artillery 
cannot follow the troops. Enemy attacks out of Novorossisk and 
Tuapse were repelled. Our mountain divisions are fighting for the . 
passes north of Sukhumi. The enemy is pressing heavily from the south 
and southwest against the expanded bridgehead south of Baksan at the 
western wing of the 1st Panzer Army. Strong enemy resistance is en- 
countered north of Maisky, too. Northeast of Grozny parts of the 13th 
and 23rd Panzer Divisions advancing in a southeasterly direction en- 
countered strong enemy forces holding the southern bank of the Terek 
River. 

Army Group B : 

Units of the division advancing toward Astrakhan made con- 
tact with the enemy for the first time at Chalchutea. Other units of 
the same division blocked the lake area south of Malyye-Derbety. 
Divisions of the 4th Panzer Army succeeded by a surprise attack in a 
northerly direction in reaching the southwestern bend of the Volga-- 
Don Canal. Together with divisions of the 6th Rumanian Army Corps 
they are carrying the attack to the north and southwest to protect 
the western flank. Enemy pressure north of Stalingrad continues. Re- 
newed attacks in the Don River bend south of Kremensk are expected. 
Italian cavalry' reports the arrival of strong enemy forces also south 
of the TChoper River estuary. 

Central Army Group ; 

In the area south of Sukhinichi the enemy supported by 
ground attack planes, attacked on both sides of the highway from 
Tula to I.itsensk following a heavy artillery barrage. All attacks 
were repulsed. Other violent continuous attacks in the areas south- 
west of Kaluga were repulsed with the effective assistance of our 
Air Force. An enemy thrust east of Vyazma was turned back by gun- 
fire. All enemy attempts to push back our lines south and north of 
Rzhev failed. 

Northern Army Group ; 

Enemy attacks on the Soltsy bridgehead were repulsed; 
south of Voronovo enemy forces which succeeded in penetrating into 
our lines on a narrow front were sealed off. 

2. Finnish Front ; 

The relief operation at the 20th Mountain Army prompted 
lively activity of enemy assault detachments. 



-360- 



29 Aug. 1942 



CGMFIDEITTIAL 



3. 



North Africa: 



•» Strang enemy bomber attacks were made during the night oJ 
27 Aug. on our southern front sector. Lively enemy harassing- gun- 
fire and reconnaissance activity during the day. The enemy con- 
tinued i<9 dig in at the northern and central sectors. As reported 
by the Air Commander,, North Africa, some of the enemy day fighter 
and pursuit planes were withdrawn on 24 and 25 Aug. to the air 
bases along the Suez Canal. 






-361- 



CONFIDENTIAL 
30 Aug. 19U2 

Items of Political Importanc e 

A detailed discussion of Allied interests in West Africa and a 
survey of recent British and American statements on the industrial 
and shipping situation are contained in Political Review No. 203, 
paragraphs 1 and 2 of the Naval Intelligence Division. 

"VfcAiy denies Reuter's assertions that Laval's conferences with 
Admirals Darlan, Platon, and Auphand were devoted to the question 
of the possible use of the French fleet and that Dakar serves 
as a base for German submarines and surface forces. 

The Turkish press also denies the report that the French and Turkish 
governments are negotiating the sale of the French warships at 
Alexandria. Rather the negotiations concerned the transport of 
American grain on French ships under the French flag. 

The enemy landing at Dieppe is the subject of a lengthy statement 
by the Armed Forces High Command based on a captured British 
operations order. It is meant to prove that the operation of 
19 Aug. was not of limited tactical scope but was planned as a 
large-scale invasion attempt. 

The Naval Staff has already defined its views of the political and 
military aspects of the operation (see War Diary 20 Aug.). In its 
opinion, these views are confirmed by a study of the enemy operations 
order, of which an excerpt was submitted today by Group West. The 
assumption that the enemy's principal aim was to deal a severe 
blow at the German coastal defenses in the west area Is supported 
and emphasized by the enemy's plan to capture, if possible, the 
entire divisional staff of the Dieppe sector. This was to create 
confusion in the higher commands and seriously upset our defense 
plans. This aim could very well have been achieved with the 
forces engaged if the surprise element had been maintained, but 
these forces were the absolute minimum required for such an opera- 
tion. It is Impossible to believe that the enemy's plans went be- 
yond this goal, unless we are to accuse him of seriously under- 
estimating our defenses and the forces needed and this is hardly 
possible. Even if the convoy observed at the time had been 
carrying troops for the operation, the most the enemy could have 
hoped to do was to establish a bridgehead in the Dieppe area, 
which could not have held out longer than a few days in view of 
our available reserves. Any other conclusion, as indicated pre* 
viously, would be justified only if landings had actually been 
undertaken simultaneously in several coastal sectors and air- 
borne forces had been dropped behind our lines. There are no 
indications of such intentions, however. These facts notwithstand- 
ing, the Naval Staff is still of the opinion that the Dieppe 
operation constitutes a serious reverse for the enemy In view 
of its implications with regard to the establishment of a 
second front and considering the Moscow conferences which have just 
been concluded. The military setback is evident from the fact 
that the planned objectives were not attained in spite of very 
grave losses. It is difficult to evaluate the exact nuisance 
effect to us, but it can hardly be denied that a certain degree 
of damage was done. Without going into details It consists in 
the recognition by our high commands that very considerably man- 
power and material must be transferred from the eastern campaign 
to the west and north areas. This is evidenced by the latest 
directive concerning reinforcement of our entire coastal defense 



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CONFIDENTIAL 
30 Aug. I9I4.2 

system along the lines of the Westwall. 

The Naval Staff is unaware of the reasons which caused the- Armed 
Forces High Command to evaluate the operation as it did in the 
release of JO Aug. (Tr. N.: The rest of this paragraph was crossed 
out by the Chief of Staff, Naval Staff on 11 Sep. 1942.) Probably 
apart from convincing public opinion on both sides that future 
invasions are useless, it was hoped to use the events of 19 Aug. 
to justify the fact that considerable forces are committed in the 
west and north areas and are withdrawn from the east. 

In order not to lessen the desired effect, it is self-evident that 
the commands involved must adhere to the chosen course. This 
explains why the Permanent Representative of the Commander in 
Chief, Navy at Fuehrer Headquarters stated that the study of the 
enemy's operations orders actually led to the published conclusions 
Thus the announcement of the Armed Forces High Command retains the 
effectiveness needed to accomplish its purpose. < 



Situation 50 Aug. 1942 

I. War in Foreign Waters 

1. Enemy Situation : 

North Atlantic : 

Reuter reports that conferences took place in Washington 
concerning the coordination of Allied military communications. 

According to Japanese reports, the Brazilian Government vainly 
asked the Portuguese Government for the use of the Azores for 
the duration of the war. 

This report does not sound very credible in view 
of Brazil's indecision with regard to active and 
aggresive warfare. 

According to Radio Daventry military authorities of Uruguay and 
Brazil conferred about Uruguay's active-participation in U.S. 
and Brazilian defense plans. 

Indian Ocean : 

According to the radio intercept service the commander 
in chief in the Indian Ocean suggested to the Admiralty that con- 
voys to the Middle East and the Persian Gulf be designated by 
the letters AP. Convoy AP 1 consisting of 3 ships, proceeding 
at a speed of 17 knots to Simons Town, was located at 35 S, 
33° E. 

2» Own Situation : 

At 2057 ship "10" reported by short signal: "Dismissed 
supply ship in quadrant KT 57 •" 

Thus the 3rd auxiliary cruiser within 2J4. hours 
has also given a reassuring sign of life. 

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CONFIDENTIAL 
30 Aug. IS ^2 

The Naval Staff confirms receipt of the message by Radiogram 
2152. 

Enemy situation report to all ships in foreign waters by Radio« 
gram O525. 



II. Situation V/est Area' 

1, Enemy Situation : 

It is learned from the Naval Attache at Buenos Aires 
that according to a map in the possession of the British Naval 
Attache, invasion barges and tugboats are concentrated at Top- 
sham near Exeter, besides those at Eastbourne. 

Air reconnaissance reported no shipping in the British Channel 
but observed mine-sweeping activity between Dover and Beachy 
Head during the afternoon. 

t 

2. Own Situation ; 
Atlantic Coast : 

Nothing to report on the naval situation. 

As a result of conferences with Group West, the i+th Coastal Patrol 
Force, and the captains of the blockade-runners UCKERMARK and 
WESERLAND, the Naval Staff Operations Division, Merchant Ships 
reports that since ships are located easily by planes during the 
night and moonlit nights are more favorable for anti-aircraft 
defense, it is suggested that the Naval Staff no longer insist 
that blockade-runners use the new moon period to break through, 
but recommend to the Group that the breakthrough of the blockade - 
runners should rather be made solely dependent on the convoy 
situation. 

In complying with this suggestion Group West is informed that the 
Naval Staff does not insist on the new moon period and that the 
date for blockade-running attempts is to be determined primarily 
by weather conditions and the convoy situation, independent of 
the moon phase. 

Channel Coast ; 

Mine -laying operations of the 2nd, l^th and 5th PT Boat 
Flotillas are scheduled for the night of 30 Aug. Otherwise 
nothing to report. 



III. North Sea, Norway, Arctic Ocean 
1. North Sea t 

Enemy Situation ; 
Nothing to report. 

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• NFIDENTIAL 
30 Aug. I9I4.2 

Own Situation ; 

Convoy and patrol services according to plan, 2 mines 
were swept "by mine-exploding vessels in the area of the Com- 
manding Admiral, Defenses, North. 

2. Norway ; 

Enemy air activity is reported in the Bergen area 
on 29 Aug. and off Lister on 30 Aug. Otherwise nothing to report, 

3. Arctic Ocean ; 

Enemy Situation ; 

Air reconnaissance reported 15 coastal vessels at 
Iokanga on 29 Aug. On the same day 5 steamers and I4 mine- 
sweepers were observed proceeding on a northerly course off 
Kanin Nos. On 30 Aug. 5 steamers and 3 patrol vessels were 
sighted on an easterly course west of Kanin Nos. 

No tactical information was obtained from reconnaissance con- 
ducted from O53O to I72O in the area between Iceland and tJan 
Mayen as far as the east coast of Greenland. 

Own Situation; 



Ocean ; 



At 0013 cruiser SCHEER reported to the Admiral, Arctic 



"a. According to statements from war prisoners and our observations, 
convoy shipping from Vilkitski Strait to Dickson Island generally 
uses the inner coastal route and the passage between the Norden- 
skioeld Archipelago* This fact is important for submarine operations= 
Convoys are escorted by heavily armed ice breakers. A convoy 
was observed anchored in Vilkitski Strait at the latitude of Hansen 
Island close to shore with the wind from the east, 

(The Naval Staff is unable to identify Hansen Island, 
only Nansen Island.) 

"b. I recommend that the Nordenskioeld passages, the inner and 
outer coastal shipping lanes, the northern Yermak Bank, and the 
coastal route south of the Nena Islands (principal island Krakovka 
750 1^2' N, 88° I4.O » E) be mined immediately. In my opinion such 
a follow-up of operation "Wunderland" offers the possibility of 
paralyzing maritime shipping to Siberia during the summer. I do 
not hesitate to recommend sending on this mission a fast mine- 
laying vessel equipped with ship-borne planes." 

The Admiral, Arctic Ocean orders the SCHEER to report whether the 
single ship located by submarine U "255" in quadrant AF 8260 
on 27 Aug. could have been the SCHEER. 

At 0i4.ll submarine U "I4.56" reports being pursued by a search 
group of i| destroyers in quadrant AT 725&« 

At O339, cruiser SCHEER informs the Admiral, Arctic Ocean as 
follows; 



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CONFIDENTIAL 



JO Aug. I9I4.2 



"a. Sank icebreaker ALEKSANDER SIBIRYAKOV off Vilkltski Strait. 

"b. Raided shipping center Dickson Harbor during night of 25 Aug.; 
entered roadstead, severely damaged icebreaker TAIMYR and a 
5,000 GRT tanker during ensuing gunbattle. The latter probably 
exploded subsequently. Main radio station, lighthouse with direction 
finder, and signal station destroyed. Observed severe damage, > 
detonations and widespread fires in harbor installations and town. 
A hitherto unknown 13 cm. coastal battery participated in the 
action." 

In reply to the inquiry of the Admiral, Arctic Ocean (see above) 
the SCHEER reports her position at the time in question as 20 miles 
southeast of that of submarine U "255". The SCHEER assumes that 
the submarine must have sighted either the ULM or a single enemy 
ship, since conditions In this area are particularly favorable 
for single ships. 

The Admiral, Arctic Ocean reports the successes of the "Wunderland" 
operation by Telegram 0955* 

The 5th Air Force reports the exact positions of the 10 mines 
dropped off Archangel on>29 Aug. by Telegram 1135 • 



IV. Skagerrak, Baltic Sea Entrances, Baltic Sea 

1. Enemy Situation : 

According to radio monitoring, Moscow announced the 
return of a Russian submarine to base following the alleged 
sinking of I4. ships In the Baltic Sea. 

2. Own Situation : 

Nothing to report from the area of the Commanding Admiral, 
Defenses, Baltic Sea. 

3 mines were swept west of Ruegen. 

Group North expressed agreement with the Admiral, Denmark regarding 
the reinforcement of the coastal defenses- (see War Diary 29 Aug.). 

According to an oral report from the Naval Attache at Stockholm, 
the Swedish Navy reported that an unsuccessful submarine attack 
was made in the Aland Sea on a westbound convoy at 0830. 

Transports and convoys in the area of the Commander, Mine Sweepers, 
Baltic Sea proceeded according to plan. The 1st and 2nd sections 
of the special Irun transport (3rd Mountain Division) Is under way 

to Reval. 

Group North protests against the interference with the authority 
of the convoy commander by the Naval Attache at Stockholm, who 
ordered the Irun squadrons stopped off Trelleborg because they 
proceeded without Swedish escort. The matter Is being Investigated 
by the Naval Staff. 

An enemy submarine in the entrance of Irbe Strait was attacked 
with depth charges. The laying of the "Seeigel" minefields had 

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CONFIDENTIAL 
30 Aug. 1942 

to be. postponed again due to bad weather. 



V. Submarine VJarfare 

1. ' Enemy Situation : 

Lively reconnaissance activity of the 15th and 19th Air 
Force groups. 24 planes were observed over the Bay of Biscay. 
Planes reported in the early afternoon a westbound submarine 240 
miles northwest of Cape Vilano and a submarine on a southerly 
course south of the Faeroe Islands. 

A report of a submarine attack was intercepted from the area 
east of Trinidad. Submarine sighting reports were sent from the 
northern exit of Belle Isle Strait and the Gulf of St. Lawrence. 

2. Own Situation : 

See Own Situation, Arctic Ocean for operations of the 
Norwegian submarine group. 

2 submarines are ordered to operate off Lisbon. They are to 
observe the 3 mile limit strictly, and to take care not to be 
detected. 

The second weather buoy laid at Porcupine Bank by submarine U 
"516" is apparently out of commission. Following an IS hour 
chase the boat sank the 10,600 GRT tanker JACK CARNES in quadrant 
CE 2659. She carried ballast. 7 shots were required to finish 
her. 

2 submarines operating off the' American coast receive permission 
to enter the St. Lawrence Gulf through Belle Isle Strait at their 
discretion if moonlight conditions are favorable. 

In the West Indies a 9,000 GRT tanker was sunk in quadrant ED 
9923 by submarine U "564". Submarine U "66" sank a 4,500 GRT 
steamer and steamer SIRE JUAN (5,200 GRT). Submarine U "162" 
sank the steamer STAR OF 0RANJE (7,735 GRT). 

No reports were received from the submarines operating in the 
Freetown area or from Group "Eisbaer". 

For additional reports see supplement to submarine situation 
in War Diary, Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity : 
Nothing to report. 

2. Incursions : 

Only a few enemy planes penetrated into the occupied 

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CONFIDENTIAL 
30 Aug. 19i+2 

territories. 

3. Mediterranean Theate" ; 

t ■ 

Nothing to report. 

1+. Eastern Front ; 

Operations by 2,000 of our planes resulted in 92 enemy 
planes shot down by fighters and 16 by anti-aircraft artillery. 
Reconnaissance activity in the Black Sea, the Gulf of Finland 
and the Arctic Ocean. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation, Mediterranean ; .. 

A large loaded U.S. tanker arrived at Gibraltar on 
29 Aug. and a destroyer on 30 Aug., both from the Atlantic. 
According to an intelligence report from Spain, 2 battleships, 
2 cruisers, one of which .vas in dock, 1 auxiliary cruiser, 
6 destroyers, at least 6 submarines, 2i| steamers, and 10 tankers 
were in Gibraltar harbor at 11+30. 7U planes were in the harbor 
and on the airfield. 

The li). blacked-out ships reported on 29 Aug. passing through the 
Strait of Gibraltar on an easterly course have not arrived at 
Gibraltar, and were not located anywhere in the western Mediter- 
ranean. The report must be considered doubtful. 

Air reconnaissance sighted few ships in the eastern Mediterranean 
between Port Said and Haifa. A small British detachment tried 
to land on Cerigotto Island; the attempt was repulsed without 
difficulty according to an Italian report. 

2. Own Situation, Mediterranean ; 

The damaged destroyer which was observed being towed 
toward Alexandria on 29 Aug. was not torpedoed by planes, but, 
as reported by the Italians, by an Italian PT boat off El Daba. 

3. Transport of Supplies to North Africa ; 

During the night of 29 Aug. the escorted steamer 
GUALDI was unsuccessfully attacked by enemy planes while pro- 
ceeding from Taranto to Tobruk. Steamer ARMANDO which ran 
aground off Call via on 27 Aug. was refloated and continued 
to Tripoli. On 30 Aug. at llj.16 the Italian tanker SAN ANDREA 
was torpedoed and set afire off Cape San Maria di Leuca by 
enemy planes despite her strong escort. At 1300 enemy surface 
forces attacked a convoy of naval barges proceeding from 
Marsa Matruh to Tobruk. Details of the incident have not yet 
been received. 

Supply traffic from Italy and Greece to North Africa and 
African coastal shipping proceeded according to plan. 



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CONFIDENTIAL 
30 Aug. 19]+2 

I4.. Area Naval Group South ; 

Aegean Sea : 

Destroyer HERMES escorted the tanker OSSAG from Candia 
to Suda and subsequently arrived at Piraeus. A search of the 
Cerigotto area for suspected mines was carried out by the X Air 
Corps without result so far. It is planned to continue the search 
with subchasers equipped with search gear. Convoy traffic in 
the Aegean Sea proceeded according to plan. 

Black Sea t 

Enemy Situation : 

Air reconnaissance at noon of 29 Aug. observed an 
unescorted tanker headed for Kerch Strait northwest of Anapa, 
an anchored steamer west-northwest of Novorossisk, and patrol 
vessels off Tuapse. At noon of J>0 Aug. lively convoy traffic 
between Tuapse and Poti and movements of single steamers were 
observed. The ship situation in the harbor of Poti is essentially 
the same as before. The hull of a heavy cruiser has been added.' 
A Bulgarian coast guard station reported sighting a peris'cope 
south of Akhtopol. 

Own Situation : 

The remote clearance group, Including motor minesweeper 
R "35"> passed through Kerch Strait en route to Genichesk during 
the night of 29 Aug. 2 Italian submarines sailed on 29 Aug. 
from Constanta via Sulina for a submarine chase off the Bessarabian 
coast. In the morning of 30 Aug. 2 Italian subchasers left 
Sulina in an easterly direction. Transport service In the Black 
Sea proceeded according to plan without major incident. The 
transfer of the Italian motor boats from Feodosyia to Yalta 
has been ordered; they will be overhauled and made ready to 
be shipped to the Caspian Sea via Mariupol and Rostov. 

The situation in Temryuk harbor permits at least 5 naval barges 
to be accommodated at the other side of the wreck even in bad . 
weather. 200 m. docking space is available inside the harbor. 
The harbor itself and the harbor entrance are reported to be 
free of mines. Engineers are trying to widen the channel of 
the entrance to 12 m. by removal of the wreck. 

Special Items : 

a. The Naval Liaison Officer at the Army High Command suggested 
to Group South and to the Commander in Chief, Navy that an admiral 
be assigned as commander in the Caspian Sea. Group South objects 
to this plan for the reason that it is useless to set up new 
staffs so long as existing ones suffer from lack of personnel, 
(This refers to the fact that no chief of staff has been appointed 
to the Admiral, Black Sea.) The Group points to the existing 
plan according to which the Admiral, Black Sea is to move his 
field headquarters forward after fighting In the Black Sea has 
ended, and is to occupy himself more and more with the operational 
tasks of the Caspian Sea. The Quartermaster Section of the 
Admiral, Black Sea will be able to handle all tasks with 2 ex- 
perienced naval shore commands. In the Group's opinion one naval 



-369- 



CONFIDENTIAL 
30 Aug. I9I4.2 

shore commander working under the direction of the Admiral, 
Black Sea will be able to take care of the necessary tasks in 
the meantime, particularly since it will be some time before 
naval forces can be transported to the Caspian Sea, due to in- 
complete railroad connections. Until then the naval shore 
commander can handle only coastal tasks. Even if naval missions 
in the Caspian Sea should arise before warfare in the Black Sea 
has stopped, the Group is convinced that, in view of the few 
combat forces involved, the naval shore commander will certainly 
be able to handle matters, possibly with the assistance of a 
specially assigned staff officer. The whole matter is in the 
Group's opinion not urgent enough to justify organizing a new 
staff at this time. 

The Naval Staff shares the Group's viewpoint. 

The Naval Staff Quartermaster Division will attend 

to this matter. 

b. See Telegram 1250 regarding preparations of Group South for 
the organization of radio intelligence and direction finding 
services in the Caspian Sea. 

c. With reference to the negative attitude of Naval Group 
South toward the plan of the Chief Quartermaster, Black Sea 
to charge the Navy with all maritime shipping problems in the 
Black Sea (see War Diary 27 Aug.), the Naval Liaison Officer 
to the Army High Command submits the comments of the Quarter- 
master General. His opinion differs from that of Group South, 
and he states that military transports will not decrease after 
fighting has stopped in the Black Sea ; on the contrary, they will 
have to be increased considerably. The Supply and Transportation 
Office of the Armed Forces Overseas reports that 200,000 tons of 
supplies are scheduled to be shipped during the first month after 
shipping to Batum is resumed, and 150,000 tons for each follow- 
ing month. To these must be added 5^,000 tons per month for the 
Air Force and 25,000 tons for the Navy. The demand that the entire 
sea-going tonnage in the Black Sea be taken over by the Navy was 
already made on 27 Aug. during a conference with the Supply and 
Transportation Office of the Armed Forces Overseas. It is 

the Quartermaster General's opinion that the Navy cannot be 
excluded from supply transport duties as long as operations in 
the Caucasus area are In progress. The Supply and Transportation 
Office of the Armed Forces Overseas was called upon to supply 
all required shipping space immediately and it requests that the 
Navy, too, do everything within its power to provide shipping 
space for the Black Sea and to increase the transshipping 
capacity of the Rumanian and Bulgarian ports. 

The matter is being taken care of by the Naval Staff Quarter- 
master Division. 



VIII. Situation East Asia 

The German Admiral at Tokyo reported that the enemy seized 
the airfield being built by the Japanese on Guadalcanal, which 
at this time is usable only for fighter planes. Consequently 
it must be expected that some of the Japanese transports which 



-37O- 



CONFIDENTIAL 
30 Aug. 19^2 

were to bring up reinforcements will be lost. Fighting is still 
in progress. 

The U.S.. Navy Department announced officially that a large Japanese 
destroyer was sunk and another one probably sunk by U.S. planes 
on 27 Aug. off Isabel Island. 

Aocordlng" to Reuter, the Japanese succeeded in landing some re- 
inforcements in Milne Bay on New Guinea. 

Reuter published a detailed communique of the U.S. Navy Department 
about the U.S. operation in the Solomon Islands between 7 Aug. 
and 23 Aug. For details see supplement to Foreign Press Report 
No.. 203. 



IX. Army Situation 

1. Russian Front : 

Army Group A * « 

Artillery fire from both sides in the Kerch area. 
Rumanian forces are advancing on Anapa. Enemy attacks from 
the direction of Novorossisk are abating. The heights of 
Maruchski Pass were captured. Attacks on parts of the 1st 
Panzer Army at Baksan and north of Maisky were repelled. Our ad- 
vance in the Baksan sector is making slow headway against strong 
enemy pressure. Also north of Grozny enemy resistance is strong. 

Army Group B ; 

Fighting flared up in the Chalchutea area. Advanced 
scouting troops reached the railroad connecting Astrakhan with 
the south. A bridgehead across the Volga-Don Canal was established 
after enemy resistance was broken. The situation north of 
Stalingrad is unchanged. Enemy attacks at both banks of the 
Khoper River mouth were repulsed. 

Central Army Group ; 

Enemy attacks southwest of Kaluga and north of 
Kirov subsided somewhat. An enemy attack at Zubtsov in the 
Rzhev area was repulsed. A penetration south of Voronova re- 
quired countermeasures , and parts of the Grossdeutschland 
Division were thrown into the battle . An enemy thrust north- 
west of Rzhev failed. 

Northern Army Group ; 

Enemy attacks on the land bridge to the 2nd Army 
Corps and against the bridgehead south of Soltsy were repulsed. 
Voronova was lost to the enemy. 

2. Finnish Front ; 

The enemy reinforced the defenses on the shore of 
Lake Ladoga north of Schluesselburg. It has been established 



-37I- 



CONFIDENTIAL . 
30 Aug. I9I42 

that 2 partisan "brigades were organized at the northern sector 
of the Finnish front containing a demolition battalion recruited 
from the population, Increased enemy supply traffic was observed 
at the Murmansk sector, 

3. North Africa *. 

No situation report of the Panzer Army, North Africa 
has been received up to now. 



-572- 



CONFIDENTIAL 
31 Aug. 1943 

Items of Polltioal Importance 

Great Britain ; 

Lifting of the ban on the Daily Worker and The Week caused lively 
dieous8ion8 inside and outside of Britain about the role of com- 
munism in Great Britain's political life. Undoubtedly this measure 
is one of the fruits of the Moscow conferences. Even conservative 
British newspapers hail the liberalism shown by the decision of 
the government. 

Swedish newspaper correspondents report that England, too, is 
harvesting the richest crop in many years. 

Iran ; 

The Vichy Telegraphic Service (Ofi) reports that a state of siege 
has been declared for the entire country. 

U.S.A. : 

The former Ambassador t'o Tokyo, Mr. Grew, warned of underestimat- 
ing Japan. 

France : 

According to the Official German News Agency (DNB) , Petain stated 
in a speech that he and Laval will carry through the national 
revolution In order to build a new France. 



Conference on the Situation with the Chief. Naval Staff 

I* Report of the Chief. Communications Division. Naval Staff : 

a. We notified the Japanese Navy about the information held 
by the enemy concerning the disposition of Japanese naval foroes 
as disclosed by our radio decoding and monitoring services. The 
enemy's findings were apparently correct to a degree which prompted 
the Japanese Navy to change its code immediately. 

b. Some time ago Reichemarschall Goering told the Chief of 
Communications Division, Air Force that he would consent to an 
extensive production program for radar sets. Thereupon the Air 
Force and the Navy jointly worked out a large-scale program, 80$ 
of the output of whioh was to go to the Air Force; it was planned, 
for instance, to equip 19,000 planes yearly. This program has 
now been rejected by the Reichemarschall as not feasible, so that 
it is necessary to draft a new curtailed program. 

II. Report of the Deputy to the Chief. Quartermaster Division. 
Naval 8taff : 

a. Battery\"Tirpitz w remains at Constanta for the time 
being. 

b. Concerning the anti-aircraft defenses of Gdynia and the 
practical and successful use of the smoke screen system during 
the latest enemy air raid. 



-373- 



confidential 

31 Aug. 1942 

c. Proposal to install degaussing gear on cruiser EMDEN, 
now that the overhaul period of the SCHEER has been postponed, 
since the Naval Construction Division believes it is possible to 
continue the naval cadet training course during the 8 weeks ship- 
yard period at Wilhelmshaven. 

The Chief, Naval Staff agrees with this, proposal. 

Tn a Verv Restricted Circle: 

III. The Chief, Operations Branch, Naval Staff Operations Division 
reports on the outcome of operation "Wunderland" as recorded in 
Situation, Arctic Ocean. 

IV. The Chief, Naval Staff is informed about the present fuel oil 
supply of the fleet, which is comparatively ample at the present 
time. He desires that an operation similar to "Wunderland" be 
considered or planned for the cruiser HIPPER, calling attention to 
the psychological effect on the crew. 

V. The Chief, Operations Branch, Naval Staff Operations Division 
reports on the following: 

a. Concerning the transfer of ship "45" from Germany to a 
port of departure in the west area: Grouo West suggested that 
ship "45" not be transferred to the west area through the Kaiser 
Wilhelm (Kiel) Canal but rather through the Skagerrak and the 
North Sea, stopping first in a southern Norwegian port. Northern 
Norway should be given as her official destination in order to 
maintain secrecy by cutting the shore contacts of the crew at 

an early date and misleading the crew as well as all shore author- 
ities concerned. To this end the Naval Staff is to issue a new 
operational order for cruiser warfare in the Arctic Ocean. From 
the southern Norwegian port the auxiliary cruiser will then be 
ordered to Wilhelmshaven by way of the North Sea, supposedly 
because of engine trouble. After leaving Norway the ship is to 
assume a new name, be repainted in the Suederpiep, and then join 
a westbound convoy of the Commanding Admiral, Defenses, North. 
To motivate the change in plans, the Group suggests stating that 
the presence of 3 auxiliary cruisers in foreign waters and 
similar Japanese activity have crowded the zone of operations to 
such an extent that a fourth auxiliary cruiser is superfluous 
for the time being. 

The Naval Staff has strong objections against routing the ship 
by way of this long detour through the Baltic Sea entrances, the 
Skagerrak, and the North Sea on account of the great danger of 
ground mines. 

The Chief, Naval Staff shares this opinion. 

b. Concerning disposition of the 6th PT Boat Flotilla: 
Since it can be anticipated that this flotilla will be ready for 
operations between the middle and the end of September it is 
necessary to decide about its assignment. The Naval Staff believes 
that there is at present no good reason for complying with Group 
North's request to transfer the flotilla to the east area, sinoe 
there are so far no indications that the Russian fleet will attempt 



-37U- 



CONFIDENTIAL 
31 Aug. 1942 

a breakthrough from Leningrad. The Chief, Naval Staff agrees with 
the following directive to Group West and the Commander, PT Boats 
(copies to Group North and the Fleet). 

"(l) The 6th PT Boat Flotilla will be put at the disposal of 
Group West (Commander, PT Boats) for assignments in the west area. 

(3) In case the situation in the Gulf of Finland should take 
an unforeseen turn, the flotilla may have to be transferred there 
temporarily. 

(3) Therefore: 

(a) Preparations for a possible transfer to the Gulf 
of Finland are to be continued. 

(b) The 6th PT Boat Flotilla will for the time being 
be stationed in the Dutch area and operate from there. A trans- 
fer to the Channel is subject to special permission of the Naval 
Staff." 

o. In. order to fill Group West's need for additional up-to- 
date patrol and escort forces, it is possible not only tq rein- 
force the 3rd Torpedo Boat Flotilla, as already reported, with 
torpedo boats T "IS' 1 and T "19" which are scheduled to sail for 
the west area on 13 Sep., but also to assign the 4 ships of the 
5th Torpedo Boat Flotilla. These ships will be ready for opera- 
tions at the beginning or middle of September and require a short 
training period only, so that they will be available to the Groi?> 
in the first days of October. The shipyard overhaul of torpedo 
boats T "4" and T "10" can be delayed until the other vessels 
arrive. Group West will thus have available 6 torpedo boats 
beginning on 13 Sep. and 8 after the beginning of October. . As 
reported oyer the telephone by Group West, the allocation of the 
5th Torpedo Boat Flotilla would make it unnecessary to allocate 
a modern minesweeper flotilla. 

The Chief, Naval Staff agrees with the above measures. 

d. Concerning the use of amphibious craft and Siebel fer- 
ries in an offensive by Army Group B from Stalingrad toward 
Astrakhan. As reported by the Naval Liaison Officer to the Army 
High Command, Array Group B requested the above-mentioned craft 
to support the advance and to protect the flanks for this opera- 
tion, which is expected to take about 10 days. The Army Group 
was informed by the Liaison Officer that the amphibious craft 
are to be moved to Makhach Kala for operations against communica- 
tions in the Caspian Sea. They would be useless on the Volga 
River because they cannot be proteoted against shelling from land. 
They are suitable, however, for operations in the Volga estuary. 
The Naval Liaison Officer requests approval of his agreement with 
Army Group B that the port commander slated for Astrakhan be 
placed at the disposal of the Army Group as adviser as soon as 
possible. The Naval Staff gave the requested approval, 

\ 
On 25 Aug. the Naval Liaison Officer to the Army High Command, 
reported the proposed size of the forces to participate in the 
offensive toward Astrakhan and reported that no decision has yet 
been made as to whether ships encountered on the Volga and Akhutba 



-375- 



CONFIDENTIAL 
31 Aug. 1942 

Rivers between Astrakhan and Stalingrad are to be destroyed and 
if so, how. The Liaison Officer asks whether it is necessary to 
organize a special Volga Flotilla, since the area will not be 
occupied permanently by our forces; he points out that mines and 
artillery will be needed for the Volga estuary in order to hold 
Astrakhan. In the Naval Staff's opinion a Volga flotilla could 
not operate as long as the enemy holds the east bank of the river. 
The problem of adequate protection of the Volga estuary is being 
studied by the Naval Staff Quartermaster Division. The Chief, 
Naval Staff shares the above opinion. 

e. Regarding the Naval Liaison Officer's proposal to ap- 
point an admiral as Commander of the Caspian Sea (see War Diary 
of 30 Aug.). 

f. The Naval Liaison Officer on the Air Force Operations 
Staff reports sb follows: 

The recent Russian attacks on German territory originated in the 
Toropets area. 

The situation on the Schluesselburg sector is threatening. For 
this reason some of the bomber forces are being shifted from the 
area of the Central Army Group to the 1st Air Force. 

The Air Force established that the Don-Caspian Sea Canal has only 
been mapped out. Thus there is no connecting waterway. 

The operations of the Panzer Armies, particularly those of the 
4th Panzer Array, have been badly affected by lack of fuel. In 
order to meet the most urgent demands, mobile refineries have 
been brought up as a first step. 

Flight tests of He 177 *s showed this plane to have a range of 
2,250 km. while carrying 4 tons. 

On account of repeated reports of enemy intentions to land on the 
Norwegian coast, the torpedo plane group was shifted from the west 
area to Stavanger. The 5th Air Force was called upon to watch 
for any landing attempt and to prevent convoy PQ 18 from slipping 
through in small groups via the noithern tip of SDitsbergen, the 
west coast of Novaya Zemlya, and the western channel to Archangel. 

Our- attacks on England are termed insignificant. 



Special Items 

The Intelligence Division of the Armed Forces High Command issued 
a detailed report on the Russian and British forces in Iran and 
the communications and economic conditions there, received from 
a reliable intelligence agent who returned from Persia to Turkey 
at the end of May. For copy see l/Skl 28912/42 geh. in War Diary, 
Part B, Vol. V. 



-376- 



CONFIDENTIAL 
31 Aug. 1943 

Situation 31 Aug. 1943 

I. War in Foreign Waters 

• 1. Enemy Situation ,: 

" North Atlantic ; 

According to an intelligence report a British ship of- 
ficer stated that a large convoy was scheduled to sail from the 
west ooast of either Scotland or northern Ireland approximately 
on 20 Aug., supposedly consisting of 25 ships for Gibraltar and 
40 ships for the Red Sea and the Persian Gulf by way of the Cape. 
The convoy was to be joined en route by a large number of U.S. 
troop transports for Iran. Among other ships, 3 auxiliary aircraft 
carriers form part of the escort. The convoy is supposed to be 
approximately 200 miles west of Oape St. Vincent between 4 and 6 
Sep. The same source reports that a new attempt will be made to 
get a convoy through the Mediterranean supported by strongest air- 
craft escort. 

South Atlantic : ' 

According to evidently wrong British radar location, a 
submarine was supposed to be at 15° S, 38° W on 23 Aug. The 
ALCANTARA was last heard of on 2 Aug. from the usual patrol area 
between the Oape and Freetown at the latitude of Luederitz Bay. 
On the same day a group of 2 unidentified vessels and 2 steamers 
was at sea off Tristan da Cunha headed for the Falkland Islands. 

The German Consulate at Monrovia reports that Liberia is planning 
to draft 5,000 men and to have native officers trained by U.S. 
officers. 

Indian Ocean : 

A Portuguese gunboat rescued survivors of the steamer 
WILFORD, sunk by a Japanese submarine, in the area of the Sambesi 
River estuary. 

2. Own Situation : 

According to the log of ship "28" the light motor tor- 
pedoboat has proved generally useful; it. increases the offensive 
power of the auxiliary cruiser and makes it possible to pose as 
a submarine. Radar set 107 was constantly out of order and thus 
never used. 

The Naval Staff confirms receipt of the war diary excerpts of 
ship H 28 n , promises to study the comments on conversion, and an- 
nounces that the supply requests are being taken care of. (See 
Telegram 1407.) 

Enemy situation report by radiograms 2146 and 2239. 



-377- 



CONFIDENTIAL 



31 Aug. 1943 



1L 



Situation West Area 

1. Enemy Situation : 

At 0540 air reconnaissance sighted 50 steamers and war- 
ships on a southerly course in the Dover area. After 1830-5 
patrol vessels were observed between the Scilly Islands and Lands 
End; otherwise no traffic was noted off the English south and west 
coasts* 

2. Own Situation ; 
Atlantic Coast : 

Mine-exploding vessel "7" was damaged while sweeping a 
mine west of point "P III"; she can be kept afloat. 

Channel Coast : 

All 3 PT boat flotillas executed their mine-laying mis- 
sions during the night of 30 Aug. according to plan. The 2nd 
and 4th PT Boat Flotillas were engaged on this occasion by enemy 
destroyers and patrol vessels. For short report see Telegram 
1025. The 5th PT Boat Flotilla performed its mission in fog. 
For short report see Telegram 1340. 

Special Item : 

The Commander, Destroyers is forced to withdraw his 
offer of assigning torpedo boat T "17" to the 3rd Torpedo Boat 
Flotilla (see War Diary 26 Aug.) since torpedo boat T "7", whioh 
was supposed to replace torpedo boat T "5", is temporarily out of 
commission. (See Telegram 1900.) The Naval Staff is not in- 
cluding T "17" in the distribution of torpedo boats. (See Con- 
ference on the Situation with the Chief, Naval Staff, paragraph 
V c.) 



III. North Sea, Norway. Arctic Ocean 

1. North Sea : 

Enemy Situation : 

Nothing to report. 

Own Situation : 

An attacking British plane was shot down by patrol ves- 
sel VP "1232" north of Terschelling. 

2 more ground mines were swept on 30 Aug. On 31 Aug. 10 ground 
mines were swept in the area of the Commanding Admiral, Defenses, 
North. Mine-exploding vessel "145" struck a mine and is being 
towed to the Borkum roadstead. 



-378- 



CONFIDENTIAL 
31 Aug. 1943 

Special Item : 

The Commanding Admiral, Defenses, North reports that 
2 men in a rubber boat could not be rescued by a sea rescue plane 
in the minefield area of quadrant AN 4337, since fighter planes 
were not available due to the approach of enemy aircraft. Radio 
monitoring revealed that these men were taken prisoner by an 
enemy plane. Group North remarks in this connection with full 
justification that the lack of fighter and reconnaissance planes 
in the threatened Dutch area must be remedied at once. (See Tele- 
gram 1320.) . 

2. Norway and Arctic Ocean : 

Enemy Situation : 

7 medium-sized steamers were at Iokanga at noon. Air 
reconnaissance established a battleship, 3 cruisers, probably an 
aircraft carrier, and 12 to 15 steamers at Reykjavik; 5 steamers 
were entering the port of Reykjavik. West of Reykjavik 5 steamers 
were sighted on easterly oourse. No tactioal information was 
gained from reconnaissance in the area from Prince CharJ.es Fore- 
land to south of Bear Island. 

According to an intelligence report a ship officer stated that a 
convoy sailed from the Peterhead area on 25 Aug. for Murmansk and 
Archangel. 

Own Situation : 

On 29 Aug. a Russian battery on Rybachi Peninsula fired 
unsuccessfully at a Norwegian trawler in Petsamo Fjord. Sub- 
marine ohase and oonvoy servioe in the area of the Commanding 
Admiral, Norway proceeded without incident. 

Cruiser SCHEER arrived at Narvik at 1800 on 30 Aug. 

In spite of being ordered to report at 3 different hours of the 
day, the ULM did not report. 

Group North was notified by the Naval Staff of the arrival of a 
small U.S. escort cruiser and of 2 escort destroyers in Bering 
Strait at the end of July which was reported by the Naval Attaohe 
at Tokyo. 

Submarine U "456" reports being pursued on the evening of 30 Aug. 
by 4 minesweepers and escort vessels. She was able to escape 
after a long bombardment by utilizing a thin drift ice cover. The 
boat is moving to her new zone of operation via quadrant AC 93. 



IV. Skagerrak. Baltic Sea Entrances. Baltic Sea 
1. Enemy Situation : 
Nothing to report. 



-379- 



CONFIDENTIAL 
31 Aug. 1942 

2. Own Situation : 

In the area of the Commanding Admiral, Defenses, Baltio 
Sea enemy air activity was observed in the Skagen area where mines 
were probably laid. 

The Naval Attache at Stockholm reports that the 2nd I run squadron 
was in the northern part of Kalmar Sound at 1520. 

An enemy submarine in the western Aland Sea was attacked with 
depth charges; Group North assumes that she was destroyed. Nothing 
to report from the area of the Commander, '^ine Sweepers, Baltic Sea. 
Convoys proceeded according to plan. 



V. Submarine Warfare 

1. Enemy Situation : 

§ 

Lively reconnaissance activity in the rendezvous area. 
Radio monitoring intercepted a convoy approximately 400 miles west 
of Brest around 2100 and the report of an unsuccessful depth charge 
attack by planes on a submarine. Several planes, reconnoitering 
an area extending to about 400 miles west of Brest, were observed 
to be maintaining radio communication with an escort vessel. 

2. Own Situation : 

In the North Atlantic a convoy on an easterly course was 
located by submarine U "609" in quadrant AK 2914; shortly there- 
after the submarine sank 2 of its steamers, totalling 8,000 CRT. 
The convoy is reported to consist of between 30 and 40 steamers. 
3 more submarines are operating against it. 

Submarines U "558" and U "564" submitted an extensive report on 
the situation in the Caribbean Sea and the ocean area of Trinidad. 

Submarine U "66" reports sinking a 7,000 GRT tanker in quadrant 
EE 9590. 

The submarines operating in the western Mediterranean are advised 
that new enemy undertakings are to be expected. 3 of the boats 
in the eastern Mediterranean are assigned to new attack areas. 

For details see supplement to submarine situation in War Diary, 
Part B, Vol. IV. 



VI. Aerial Warfare 

1. British Isles and Vicinity: 
Nothing to report. 



-38O- 



CONFIDENTIAL 
31 Aug. 1942 

2. Incursions : 

No enemy planes were reported over German territory. 
Enemy air activity in Denmark, Norway, and western France was 
light. « 

3. Mediterranean Theater ; 

428, planes were engaged in support of our army opera- 
tions in North Africa. 8 enemy planes were shot down. Reconnais- 
sance missions were flown over the Mediterranean. For resulting 
information see Enemy Situation, Mediterranean. 

4. Eastern Front ; 

74 enemy planes were shot down in the course of army 
operations. 

For results of reconnaissance in the Black Sea and Arctio Ocean 
see respective enemy situation reports. 



VII. Warfare in the Mediterranean and the Black Sea 

1. Enemy Situation. Mediterranean ; 

Acoording to an Italian report from a reliable source, 
the Amerioan war council at Cairo is said to have decided to dis- 
continue shipping in the Mediterranean except in an emergenoy. 

2 destroyers left Gibraltar during the afternoon for the Atlantic. 

An intelligence report from Spain alleges that lights from 29 un- 
identified ships coming from the Atlantic and sailing on an easterly 
course were observed in Gibraltar Strait during the night of 30 
Aug. Air reconnaissance flown today as far as 2° E saw no trace 
of this formation or of the one reported observed during the night 
of 29 Aug. It may well be that such reports are being planted by 
the British intelligence service in order to alarm us and to in- 
duce us to withdraw air forces from the central Mediterranean and 
North Africa. 

Air reconnaissance sighted 3 PT boats on a westerly course south 
of Crete at 1530, which subsequently withdrew at top speed south- 
east and then east. After darkness contact with them was lost 
approximately 100 miles north-northwest of Marsa Matruh. No 
other reports of sighting enemy forces were received from the 
eastern Mediterranean. 

At 1500 the radio intelligence service intercepted reports of 
enemy planes about a convoy in the area west of Crete consisting 
of 2 tankers and 1 freighter on a 290° course escorted by 3 de- 
stroyers, and shortly after midnight reports of another convoy of 
2 steamers and 4 destroyers on a northerly course. 



•-38I- 



CONFIDENTIAL 
31 Aug. 1942 

2. Own Situation, Mediterranean ; 



m 



An Italian torpedo boat reports sinking an enemy sub- 
marine off Cerigotto on 29 Aug. and shooting down 2 enemy planes 
attaoking the escorted steamer GUALDI during the night of 29 Aug. 

2 of our PT boats were en route from Augusta to Suda and- 4 from 
Suda to Mar 8a Matruh. 

The Italian steamer MONSTELLA proceeding in convoy was torpedoed 
by an enemy submarine in the afternoon of 30 Aug. in the Ionian 
Sea off Paxos. Attempts are being made to tow her to port. 

3. Transport of Supplies to North Africa ; 

Tanker SAN ANDREA, which was torpedoed on 30 Aug., sank 
with 2,285 tons of Otto fuel for the Army and 126 tons of avia- 
tion gasoline. 

Steamer GUALDI arrived at Tobruk during the forenoon of 30 Aug. 
Supply transports from Italy and Greece to North Africa and North 
African coastal shipping proceeded otherwise according to plan. 

4. Area Naval Group South ; 
Aegean Sea ; 

The tankers ABRUZZI and P.O. FASSIO arrived at Suda and 

will proceed from there to Tobruk and Benghazi respectively in 
company of steamer BOTTIGLIERI. 

Black Sea ; 
Enemy Situation ; 

Air reconnaissance reported a southbound convoy of 1 
steamer and 1 patrol vessel between Tuapse and Adler. A tanker, 

3 steamers, and 10 patrol vessels were sighted off Ochemchiri. 

Lively ship traffic was observed in the Caspian Sea and on the 
Volga River. 

Own Situation ; 

During the night of 30 Aug. the 1st PT Boat Flotilla 
operated in the area north of Sochi and intercepted an enemy con- 
voy protected by a torpedo boat and 4 or 5 PT boats. A 3,000 GR^ 

tanker and a 1,500 GRT steamer were reported sunk. The enemy used 
depth charges in defense. 

Italian subchasers operating off Novoros6isk during the same night 
sighted no traffic. On the way out they were bombed and strafed 
by 6 low-flying enemy fighter planes. During the night of 29 Aug. 
our coastal artillery fired on 4 enemy motor boats proceeding 
through the Kerch Strait off Chushka Spit; 1 boat was set afire. 
Hits were scored also on enemy gunboats off Tuzla Soit. Enemy 
guns returned our fire. 



-382- 



CONFIDENTIAL 
31 Aug. 1943 

Mine-sweeping operations proceeded according to plan. 9 mines 
were swept west of Cape Kherson by the Crimean Mine Sweeper Group. 
The remote clearance group arrived at Genichesk on 30 Aug. and 
departed for Mariupol on 31 Aug. 

A submarine chase off the Bessarabian coast, conducted by Italian 
submarines on 30 Aug., was unsuccessful. 

Motor minesweeper R "36". secured important maps at Temryuk. The 
harbor there is thoroughly destroyed. 

Convoy service proceeded according to plan. 

Speoial Items : 

a. In its' comment to the remarks of the Army Quartermaster General, 
Naval Group South points out that it intends to continue to take 
care of all military sunply shipments.but to turn over non-military 
shipping to the civilian shipping authorities. The Group thus 
agrees with the opinion of the Quartermaster General that the Navy 
should not be relieved of all supply duties. It is also planned 

to maintain fully all of the sea transportation offices An the 
western Black Sea area which are serving as ports for the ship- 
ment of military supplies for the east area. In the Group's 
opinion, however, it is not possible to maintain sea transporta- 
tion offices for non-military goods, in view of the lack of of- 
ficer personnel. The entire sea-going tonnage available in the 
Black Sea is already in the hands of the Navy, but this does not 
apply to the Beagoing river vessels used for non-military purposes. 
Group South requests the Naval Staff Quartermaster Division to 
provide sufficient seagoing shipping space as quickly as possible 
in order to be in a position to meet the demand for the trans- 
portation of more than 200,000 tons per month. All possibilities 
of procuring additional tonnage in the southeast area have been 
completely exhausted. Since supply shipping was taken over by 
the sea transportation offices, everything possible is being done 
to increase the capacity of the Blaok Sea ports. (See Telegram 
1735.) 

b. According to the Naval Liaison Officer at the Army High Com- 
mand, the Army Quartermaster General ordered the Chief Supply and 
Administration Officer of the 11th Army to consult the Admiral, 
Black Sea about the possibilities of using Sevastopol as a trans- 
shipping port in place of Nikolayev and Kherson, until it becomes 
possible to use the Caucasian harbors. Daily 1,500 to 2,000 tons 
must be handled. The supplies are to be shipped to Kerch or to 
the Stalino area via Melitopol. (See Telegram 1900.) 

Group South has already been studying the problem 
of using the port of Sevastopol for quite some 
time. It remains to be seen what stand the Group 
will take. 



VIII. Situation East Asia 
Nothing to report. 



-383- 



CONFIDENTIAL 
31 Aug. 1942 

IX. Army Situation 

1. Russian Front ; 

Army Group A ; 

Elements of the Rumanian Army under the personal leader- 
ship of the Commander in Chief, Army, General Dumitresou, captured 
the town and port of Anapa. In the V Army Corps sector the domina- 
ting position in the hills west of Novorossisk has been reached. 
Small enemy forces could not be kept from infiltrating northward 
south of Krasnodar. The Mountain Division made slow progress 
against stubborn enemy resistance. The LII Array Corps is closing 
in on Mozdok. 

Army Group B : 

Chalchutea was captured. A Rumanian attack at the south- 
ern wing of the 4th Panzer Army resulted in the capture of Teryaohi. 
The 24th Panzer Division broke through the positions north of the 
bridgehead across the Don- Volga Canal and reached the railroad 
20 km. west of Stalingrad. Enemy pressure east of Kalach lessened* 
However, stubborn enemy attacks are being carried on in great 
strength against the divisions of the XIV Panzer Corps north of 
Stalingrad. An attack launched after strong artillery preparation 
south of JCremensk was repulsed with heavy losses to the enemy. 

Central Army Group : 

Enemy concentrations are reported from the Sukhinichi 
sector. East of Vyazma the enemy vainly attacked our positions 
north of the Vyazma-Kaluga railroad. All enemy attacks at Gzhatsk 
and in the Rzhev area were repulsed. Only northwest of Rzhev was 
the enemy able to penetrate our lines, but was sealed off. 

Northern Army Group : 

Enemy nressure on the land bridge leading to the II Army 
Corps continued undiminished. Enemy pressure is particularly 
strong south of Lake Ladoga where it takes all our reserves to 
withstand the enemy attacks. 

2. Finnish Front : 

The situation remained unchanged. 

3. North Africa : 

The attaoking force of the Panzer Army surmounted a 
great number of minefields and barrages and drove motorized ele- 
ments of the 7th British Tank Division back to the east and north. 
In the evening our advance resulted in the capture of the line of 
Mannaquir el Taiyara just south of Alama Mayil. Reoonnaissanoe 
detachments are securing our eastern flank in the direction of 
Deir el Ragil. Operations of assault detachments carried out on 
the northern front sector during the night of 30 Aug. established 
the presence of the 1st South African Division in the area south 
of El Alamein. The Air Force supported the offensive of the 
Panzer Army with successful attacks of fighter planes and dive 
bombers. The Commanding General, German Africa Corps, General of 



-381*- 



CONFIDENTIAL 
31 Aug. 1942 

the. Panzer Forces Nehring, was wounded, and the Commanding General 
of the 21st Panzer Division, General von Bismarck was killed in 
action. 

Thus the decisive offensive was opened by German 
initiative. As it can be assumed that both sides 
are of equal strength, better leadership will 
1 ultimately bring the decision. 



• 



,385- 



CONFEDEHTIAL 






Akkord 

"75ode nam© for minelayi&g epilation toy the Sth Minesweeper Flotilla 



in the English Channel. 



Alba 



Code name for the laying of cutter-float barrage SW 105 by the 8th 
Motor Minesweeper Flotilla. 

Anton 1 and 2 

Code name for flanking minefields in the British Channel. 



1. 

2. 



510 6.1 » H, Oio ?7.8« E to 
51© 7.o« N, Oio 42. 6» E 

51° 5.4' H, Oio 58.2' E to 



510 



4.0» H, 



Oio 33.6' E 



Arbelter 

Code name for the laying of barrage 04 by the 8th Minesweeper 
Flotilla in the English Channel. 

Barbarossa 

Cover name for the invasion of the U.S.S.R. begun in 19^1. 

Blueoher 

""Cover name for the crossing of the Kerch Strait by German forces 
and capture of the eastern shore. 

Bonifaclus. Bonl fatius 

See "Caesp " I and II. 

Bruno 1 and 2 

Code name for flanking minefields in the English Channel. 

1. 50° 58.5' N, 01° 28.4 • E to 
51° 1.2' N, 01° 31.5' E 

2. 50° 56. 4« H, 01° 24.3* E to 
50° 58. 9 ' N, 01° 27. 5 ' E 

The code word for the minelaying operation was "Clara". 

Caesar I and II 

Code name"~for flanking minefields in the English Channel. 

I. 500 48.3' H, Oio 15.8' E to 
50o 45.7' H, Oio 12.9' E 

II. 500 45. 8« H, Oio 13.6' E to 
50O 42.6* H, Oio 11.0' E 

The code word for the minelaying operation was "Bonlfatius". 

Clara 

See "Bruno" 1 and 2. 

Duesseldorf 

Code name for a trial SMA barrage laid by submarine U "119 in the 
Skagerrak. 



_xR£. 



CONFIDENTIAL 

Elche 

""Code name for the transfer of cruiser LUETZOW from Trondheim to the 
Baltic Sea. 

Blspalast 

Operation against convoys PQ 18 and QP 14. 

Eleanor 

Code hane for Westwall barrage 5a laid hetveen quadrant AN 6864 
upper right and AN 6855 lower left. 

EMC line 

Standard nine, type C; a contact mine against surface vessels. 

Erasmus I and II 

Code nameTor the laying of cutter float barrages SW 101 and 102 
In the North Sea. 

Etappe 

Secret German naval organization for providing German naval units 
with information and supplies from foreign bases. Etappe Japan 
was of great importance for German blockade-running activities. 

Frits 

""Code name for the laying of barrages Al and A2 by the 12th Motor 
Minesweeper Flotilla in the English Channel. 

Fuenf te Kolonne 

Code name for Westwall barrage 10a laid between quadrant AN 6626 
and AN 6585. 

Granada 

Code name for the planned mining of the southern entrance of the 
Great Belt in case the Russian Baltic Sea fleet should -attempt to 
break through. This plan was also known as "Granada grosse Aus- 
fuehrung" and "Grauer Ort". 

Granada grosse Ausfuohrung 
See "Granada". 

Grauer Ort 

See "Granada " . 

Qrundsee Vest, Qrundsee Ost 

Code names for the planned mining of the Gjedser Strait in case 
the Russian Baltic Sea fleet should attempt to break through. 

Hoi gauge 

~~ Code name for the operation of the HERMANN for the purpose of es- 
tablishing a weather observation post and radio station on the 
east coast of Greenland near Cape Bismarck. 

Iwan 

Code name for minelaying operation by submarine in the Pechora 
estuary. 

Kirschbluete 

German "eover name for voyage of Japanese submarine I 50 to Europe. 
The submarine, under Commander Endo, left Japan the middle of 
April and arrived in Lorient in the beginning of August. She 
crossed the equator on 18 Jul. at 20° V. She had expected to reach 
France in the middle of July but was delayed en route. 



-587- 



COHFIDBBTIAL 

Lachs 

Code name for minefields laid in the coastal island waters north 
of Hogland in the eastern Baltic Sea. 

Lachs fang 

Code naae for operation by the 20th Mountain Army and the 5th Air 
Force to capture the Murman railroad at Kandalaksha in an attempt 
to cut Russia's supply lines. 

Lilie 

"One of the designations of the Sunda Strait as a reference point 
on the German blockade-runner route to Japan. . 

LMB Qruen 

Aerial mine (parachute mine) type B with acoustic firing device. 

Masuren 

Code name for the laying of barrage 02 by the 8th Minesweeper 
Flotilla in the Channel. 

Nashorn 

Code name for a series of German mine barrages designed to keep 
Russian submarines from breaking out of the Gulf of Finland into 
the Baltic Sea. They extended from Hargen on the Estonian side to 
Forkkala on the Finnish side. 

Hordllcht 

Code name for the renewed Army operations against Leningrad in 
September 1942. 

Oppeln 

"Code name for experimental mlnelaying mission in the Skagerrak by 
the ROLAIID. 

Paukensohlag 

Code name for first operation of submarines off the U.S. ooast be- 
ginning December 1941. The submarines involved in the operation 
were designated as group "Paukenschlag". 

Paul 

Code name for mlnelaying operation by a submarine in the western 
entranee of the Tugor Strait. 

Peter 

"Code name for mlnelaying operation in the western entrance of 
Matochkin Strait carried out by submarine. 

Political Review (Politisohe Uebersicht) 

A dally review of political developments abroad published by the 
Haval Staff Intelligence Division (3/Skl). 

QQQ signal 

Distress signal sent by ships when sighting or under attack by 
armed raider. QQQ was also used when suspicious merchant vessels 
were sighted. 



Rack mine, type A 
See SMA mine. 



Rasputin 

Code name for a mlnelaying operation by the KOELH and several de- 
stroyers outside the west entrance of Matochkin Strait. 



-388- 



COHFIDBHTIAL 

Roe 38el sprung 

Code name for operation against convoy PQ 17. 

Romanov 

Code name for minelaying operation North of Kolguyev carried out 
by German destroyers. Simultaneously mines vere laid south of 
Kolguyev (operation "Zarevitsch"). 

Route "Anton" 

A Oerman shipping route. Its geographical borders vere: The 
French coast at 47° 50 » I; 470 30 ' H, 29° V; 43° N, 40© V; 370 
N, 4oo W; continued on 37° H; the southern and eastern borders 
of route "Anton" vere defined by the borders of the operations 
zone of the submarines in the South Atlantic. 

RRR signal 

Distress signal sent by ships vhen sighting or under attack by 
enemy warship. 

Rurick 

""Code name for minelaying operation by submarine .outside the harbor 
of Amderma. 

Samland 

Code name for the laying of barrage 01 by the 3rd Torpedo Boat 
Flotilla in the English Channel. 

Soohund 

Code name for a series of minefields in the Gulf of Finland. 

Sooljeel 

Code name for German minefield from the island of Aspoe to 60° 
04' H, 27° 09 1 E; 59° 54' H, 27° 20.5' E, via Vigrund to Cape 
Eur gal ski. 

Soeloeve 

Cover name for the planned invasion of England. 

Seide 

German reference point at 30° 3, 04o w. 

Sevilla 

Tode name for the planned mining of the southern entrance of the 
Sound in ease the Russian Baltic Sea fleet should attempt to break 
through. This plan vas also known as "Sevilla grosse Ausfuehrung 
and "Starkshorn *. 

Sevilla fgrosse Ausfuehrung 
See^flevllla". 

3MA mine 

Rack mine type A. A moored influence mine laid by a specially 
constructed minelaying submarine. Its charge weighed approximately 
350 kilograms. This mine vas designed for waters of 50 m. to 
300 m. depth. 

SSS signal 

Distress signal sent vhen sighting or under attack by a submarine) 
could also indicate being damaged by a mine. 

Standard mine. Type C 

See EMC mine. 

-389- 



Starkshom 

See "Sevilla " . 

Toledo 

"TTode name for the planned mining of the northern entrance of the 
Sound In case the Russian Baltic Sea fleet should attempt to break 
through. 

Walter submarine 

Submarine designed by the Walter firm, Kiel, distinguished by the 
addition of a turbine drive to the standard Diesel and electrical 
drives. The turbines were to be driven by a fuel obtained from 
the decomposition of hydrogen peroxide and vere to give the sub- 
marine a high underwater speed. The hull vas completely stream- 
lined. 

Wunderland 

Code name for operation by the SCHEER during vhich she attacked 
Russian shipping and shore Installations in the Kara Sea In August 
19^2. 



Zar 



Code name for minelaying operation off the northern tip and north- 
western coast of Novaya Zemlya by the ULM. 



Zar ewi tech 

Code name for minelaying operation south of Eolguyev carried out by 
German destroyers. Simultaneously mines were laid north of 
Eolguyev (operation "Romanov"). 

Zeus 

~~"~~ Code name used to designate the SCHEER during operation "Wunderland" . 



-390-